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Teradyne Rides on Accelerating AI Infrastructure Demand: What's Ahead?
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Key Takeaways
Teradyne sees AI demand as the main growth driver for Q4 2025 and beyond.
Semiconductor Test revenues rose 7% YoY and 23% sequentially, 78.8% of total sales.
AI-related robotics sales climbed to 8% in Q3 2025, up from 6% last quarter.
Teradyne (TER - Free Report) is benefiting from the growing demand for AI infrastructure, which has been a major growth driver of its success. It is benefiting from strong AI-related demand that is driving significant investments in cloud AI build-out as customers accelerate the production of a wide range of AI accelerators, networking, memory, and power devices.
The company’s UltraFLEXplus system is specifically designed for high-performance processors and networking devices, which are critical for AI applications. This has proven to be a key driver in boosting the Semiconductor Test business. In the third quarter of 2025, Semiconductor Test revenues rose 7% year over year and 23% sequentially, accounting for 78.8% of sales in the reported quarter.
TER’s expanding portfolio has been noteworthy. In October 2025, Teradyne announced the launch of its Titan HP system-level test platform, designed specifically for the AI and cloud infrastructure markets.
Teradyne is also integrating AI features into its robotics products, such as UR cobots and AMRs, to enhance performance in AI-driven work cell applications. In the third quarter of 2025, 8% of robotics sales were for AI-related products, up from 6% in the previous quarter.
TER anticipates AI-related demand to remain the primary engine of growth in the fourth quarter of 2025 and beyond. For the fourth quarter of 2025, Teradyne expects revenues between $920 million and $1 billion.
Teradyne Suffers From Stiff Competition
Teradyne is facing stiff competition from the likes of Advantest Corporation (ATEYY - Free Report) and ABB (ABBNY - Free Report) . Both Advantest and ABB are expanding their footprints in the AI infrastructure space.
Advantest’s expanding footprint in the AI infrastructure space has been a key catalyst. This month, Advantest announced the M5241 Memory Handler. This new, high-speed, temperature-controlled solution is made for AI and high-performance memory testing. The first shipments are planned for the second quarter of 2026.
ABB’s expanding portfolio has been noteworthy. In November 2025, ABB strengthened its partnership with Applied Digital to provide low and medium-voltage electrical infrastructure. This includes HiPerGuard medium voltage Uninterruptible Power Supply technology and medium voltage switchgear for the new 300 MW Polaris Forge 2 AI factory campus in North Dakota. This will improve power density, efficiency, and scalability for AI workloads.
TER’s Share Price Performance, Valuation, and Estimates
Image: Bigstock
Teradyne Rides on Accelerating AI Infrastructure Demand: What's Ahead?
Key Takeaways
Teradyne (TER - Free Report) is benefiting from the growing demand for AI infrastructure, which has been a major growth driver of its success. It is benefiting from strong AI-related demand that is driving significant investments in cloud AI build-out as customers accelerate the production of a wide range of AI accelerators, networking, memory, and power devices.
The company’s UltraFLEXplus system is specifically designed for high-performance processors and networking devices, which are critical for AI applications. This has proven to be a key driver in boosting the Semiconductor Test business. In the third quarter of 2025, Semiconductor Test revenues rose 7% year over year and 23% sequentially, accounting for 78.8% of sales in the reported quarter.
TER’s expanding portfolio has been noteworthy. In October 2025, Teradyne announced the launch of its Titan HP system-level test platform, designed specifically for the AI and cloud infrastructure markets.
Teradyne is also integrating AI features into its robotics products, such as UR cobots and AMRs, to enhance performance in AI-driven work cell applications. In the third quarter of 2025, 8% of robotics sales were for AI-related products, up from 6% in the previous quarter.
TER anticipates AI-related demand to remain the primary engine of growth in the fourth quarter of 2025 and beyond. For the fourth quarter of 2025, Teradyne expects revenues between $920 million and $1 billion.
Teradyne Suffers From Stiff Competition
Teradyne is facing stiff competition from the likes of Advantest Corporation (ATEYY - Free Report) and ABB (ABBNY - Free Report) . Both Advantest and ABB are expanding their footprints in the AI infrastructure space.
Advantest’s expanding footprint in the AI infrastructure space has been a key catalyst. This month, Advantest announced the M5241 Memory Handler. This new, high-speed, temperature-controlled solution is made for AI and high-performance memory testing. The first shipments are planned for the second quarter of 2026.
ABB’s expanding portfolio has been noteworthy. In November 2025, ABB strengthened its partnership with Applied Digital to provide low and medium-voltage electrical infrastructure. This includes HiPerGuard medium voltage Uninterruptible Power Supply technology and medium voltage switchgear for the new 300 MW Polaris Forge 2 AI factory campus in North Dakota. This will improve power density, efficiency, and scalability for AI workloads.
TER’s Share Price Performance, Valuation, and Estimates
Teradyne shares have surged 114.7% in the trailing six-month period, outperforming the Zacks Computer & Technology sector’s rise of 21.4% and the Zacks Electronics - Miscellaneous Products increase of 29.3%.
TER Stock's Performance
Image Source: Zacks Investment Research
TER stock is trading at a premium with a forward 12-month Price/Sales of 8.32X compared with the Electronics - Miscellaneous Products industry’s 7.24X. TER has a Value Score of D.
TER Valuation
Image Source: Zacks Investment Research
The consensus mark for fiscal 2025 earnings is pegged at $3.51 per share, unchanged over the past 30 days. This suggests 9.01% year-over-year growth.
Teradyne, Inc. Price and Consensus
Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote
Teradyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.