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Serve Robotics vs. Teradyne: Which Robotics Stock Is the Better Buy?
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Key Takeaways
SERV is scaling urban delivery, expanding fleets past 2,000 robots as autonomy and utilization improve.
TER's Q3 2025 revenues rise 4.3% as AI-driven semiconductor test demand lifted compute and memory shipments.
TER faces uneven robotics demand, but expects AI compute, networking and memory to drive growth through 2026.
Automation and robotics are steadily moving from experimentation into real-world deployment as advances in AI, compute and machine intelligence intersect with labor constraints and rising efficiency demands. Within this shifting landscape, Serve Robotics Inc. (SERV - Free Report) and Teradyne, Inc. (TER - Free Report) represent two very different ways for investors to gain exposure to the same long-term automation megatrend. Serve Robotics is focused on deploying autonomous delivery robots in dense urban environments, while Teradyne operates as a mature leader supplying mission-critical automation and robotics systems to industrial and semiconductor customers.
The comparison is particularly timely as both companies emphasize AI-driven robotics as a core strategic priority, but from opposite ends of the maturity spectrum. Serve Robotics is centered on scaling real-world autonomy, building data-driven operating leverage and expanding partnerships, while Teradyne is leveraging its installed base, engineering depth and cash-generating model to integrate AI into industrial automation and robotics workflows. For investors, the comparison underscores how exposure to the same automation tailwinds can look very different depending on business model, execution strategy and stage of development.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Serve Robotics Stock
Serve Robotics continues to see growing engagement from delivery platforms and restaurant partners as automation gains wider acceptance across urban environments. The company is benefiting from steady progress in autonomy and continuous learning from real-world operations, which is supporting efforts to scale its network. These developments have contributed to improving growth expectations as the company advances beyond early-stage deployment, even as execution and operational refinement remain ongoing.
Fleet expansion is a central pillar of the company’s strategy as autonomous delivery transitions from pilot programs toward broader citywide adoption. In the third quarter of 2025, Serve Robotics reported sharp growth in delivery volumes while maintaining reliability near peak levels and a strong safety record. The company expanded into multiple large metropolitan markets, improved utilization through broader platform reach and met its 2025 operational milestone by deploying more than 2,000 autonomous robots. A rising share of miles driven autonomously and lower human intervention rates signal improving system performance, supporting broader urban-scale deployment.
However, rapid expansion continues to carry financial and operational pressures. Losses remain elevated, reflecting the high cost of scaling fleet operations, advancing technology and expanding into new markets. The company reported a GAAP net loss of $33 million in the third quarter of 2025 and $67 million over the first nine months of the year, underscoring the extended path toward breakeven as investment remains heavy across deployment and development initiatives. Ongoing cash burn has increased reliance on external funding.
Looking ahead, Serve Robotics expects its growing fleet, improving autonomy capabilities and expanding delivery and restaurant partnerships to drive stronger utilization and monetization. Supported by the multi-year agreements with Uber Technologies’ (UBER - Free Report) Uber Eats and DoorDash (DASH - Free Report) , the company believes it can convert broader urban adoption into more durable revenue leverage as deployment accelerates through 2026.
The Case for Teradyne Stock
Teradyne is benefiting from accelerating demand tied to AI-driven semiconductor and automation workloads as customers invest in increasingly complex compute, networking and memory devices. The company is leveraging scale, engineering depth and installed base to align its portfolio with long-duration technology transitions across data centers and advanced manufacturing. This positioning has supported improving momentum as AI becomes a primary demand driver across the company’s core end markets.
In the third quarter of 2025, revenues increased 4.3% year over year, driven primarily by strength in Semiconductor Test. AI-related demand supported higher shipments across compute, networking and memory applications, with memory test revenues more than doubling sequentially on strong HBM-related activity. The company also reported sequential revenue growth of 18%, reflecting customer pull-ins and rising test intensity as AI devices grow more complex. These trends reinforce Teradyne’s role as a critical enabler of advanced semiconductor production.
However, performance remains uneven across the broader portfolio. Robotics revenues were flat sequentially and declined year over year, reflecting ongoing softness in industrial automation and weakness in indirect distribution channels. Mobile and automotive-related demand also remained subdued, while AI-driven project timing continues to be lumpy, introducing quarter-to-quarter variability despite solid underlying demand.
Looking ahead, Teradyne expects AI-related compute, networking and memory demand to remain the primary growth engine through 2026. Continued investment in differentiated test platforms, expanding customer programs and improving utilization across its installed base position the company to capture further upside as data center buildouts and AI semiconductor complexity continue to rise.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, Serve Robotics' share price performance has stood below that of Teradyne.
Image Source: Zacks Investment Research
Considering valuation, Serve Robotics is currently trading at a premium compared with Teradyne on a forward 12-month price-to-sales (P/S) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends of SERV & TER
The Zacks Consensus Estimate for SERV’s 2026 loss per share has widened to $1.83 in the past 60 days, as shown below. Also, the estimated figure indicates a wider loss from the year-ago estimated loss of $1.59 per share.
SERV's EPS Trend
Image Source: Zacks Investment Research
Teradyne's earnings estimates for 2026 have declined in the past 60 days to $5.09 per share. This indicates expected earnings growth of 43.9% year over year.
TER’s EPS Trend
Image Source: Zacks Investment Research
Final Verdict: Serve Robotics vs. Teradyne
Serve Robotics and Teradyne both offer exposure to the long-term automation and robotics megatrend, but their fundamentals point to different near-term investment profiles. SERV is positioned for faster growth as autonomous delivery scales, supported by expanding fleet deployment, improving autonomy performance and multi-year platform partnerships that enhance utilization and monetization potential. Teradyne offers a more established, cash-generating model tied to AI-driven semiconductor demand, but faces variability across robotics and non-AI end markets, alongside softer earnings estimate momentum.
With Serve Robotics currently carrying a Zacks Rank #2 (Buy) and Teradyne having a Zacks Rank #3 (Hold), the former’s stronger growth outlook and improving fundamentals make it the more attractive robotics stock for investors seeking upside at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Serve Robotics vs. Teradyne: Which Robotics Stock Is the Better Buy?
Key Takeaways
Automation and robotics are steadily moving from experimentation into real-world deployment as advances in AI, compute and machine intelligence intersect with labor constraints and rising efficiency demands. Within this shifting landscape, Serve Robotics Inc. (SERV - Free Report) and Teradyne, Inc. (TER - Free Report) represent two very different ways for investors to gain exposure to the same long-term automation megatrend. Serve Robotics is focused on deploying autonomous delivery robots in dense urban environments, while Teradyne operates as a mature leader supplying mission-critical automation and robotics systems to industrial and semiconductor customers.
The comparison is particularly timely as both companies emphasize AI-driven robotics as a core strategic priority, but from opposite ends of the maturity spectrum. Serve Robotics is centered on scaling real-world autonomy, building data-driven operating leverage and expanding partnerships, while Teradyne is leveraging its installed base, engineering depth and cash-generating model to integrate AI into industrial automation and robotics workflows. For investors, the comparison underscores how exposure to the same automation tailwinds can look very different depending on business model, execution strategy and stage of development.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Serve Robotics Stock
Serve Robotics continues to see growing engagement from delivery platforms and restaurant partners as automation gains wider acceptance across urban environments. The company is benefiting from steady progress in autonomy and continuous learning from real-world operations, which is supporting efforts to scale its network. These developments have contributed to improving growth expectations as the company advances beyond early-stage deployment, even as execution and operational refinement remain ongoing.
Fleet expansion is a central pillar of the company’s strategy as autonomous delivery transitions from pilot programs toward broader citywide adoption. In the third quarter of 2025, Serve Robotics reported sharp growth in delivery volumes while maintaining reliability near peak levels and a strong safety record. The company expanded into multiple large metropolitan markets, improved utilization through broader platform reach and met its 2025 operational milestone by deploying more than 2,000 autonomous robots. A rising share of miles driven autonomously and lower human intervention rates signal improving system performance, supporting broader urban-scale deployment.
However, rapid expansion continues to carry financial and operational pressures. Losses remain elevated, reflecting the high cost of scaling fleet operations, advancing technology and expanding into new markets. The company reported a GAAP net loss of $33 million in the third quarter of 2025 and $67 million over the first nine months of the year, underscoring the extended path toward breakeven as investment remains heavy across deployment and development initiatives. Ongoing cash burn has increased reliance on external funding.
Looking ahead, Serve Robotics expects its growing fleet, improving autonomy capabilities and expanding delivery and restaurant partnerships to drive stronger utilization and monetization. Supported by the multi-year agreements with Uber Technologies’ (UBER - Free Report) Uber Eats and DoorDash (DASH - Free Report) , the company believes it can convert broader urban adoption into more durable revenue leverage as deployment accelerates through 2026.
The Case for Teradyne Stock
Teradyne is benefiting from accelerating demand tied to AI-driven semiconductor and automation workloads as customers invest in increasingly complex compute, networking and memory devices. The company is leveraging scale, engineering depth and installed base to align its portfolio with long-duration technology transitions across data centers and advanced manufacturing. This positioning has supported improving momentum as AI becomes a primary demand driver across the company’s core end markets.
In the third quarter of 2025, revenues increased 4.3% year over year, driven primarily by strength in Semiconductor Test. AI-related demand supported higher shipments across compute, networking and memory applications, with memory test revenues more than doubling sequentially on strong HBM-related activity. The company also reported sequential revenue growth of 18%, reflecting customer pull-ins and rising test intensity as AI devices grow more complex. These trends reinforce Teradyne’s role as a critical enabler of advanced semiconductor production.
However, performance remains uneven across the broader portfolio. Robotics revenues were flat sequentially and declined year over year, reflecting ongoing softness in industrial automation and weakness in indirect distribution channels. Mobile and automotive-related demand also remained subdued, while AI-driven project timing continues to be lumpy, introducing quarter-to-quarter variability despite solid underlying demand.
Looking ahead, Teradyne expects AI-related compute, networking and memory demand to remain the primary growth engine through 2026. Continued investment in differentiated test platforms, expanding customer programs and improving utilization across its installed base position the company to capture further upside as data center buildouts and AI semiconductor complexity continue to rise.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, Serve Robotics' share price performance has stood below that of Teradyne.
Image Source: Zacks Investment Research
Considering valuation, Serve Robotics is currently trading at a premium compared with Teradyne on a forward 12-month price-to-sales (P/S) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends of SERV & TER
The Zacks Consensus Estimate for SERV’s 2026 loss per share has widened to $1.83 in the past 60 days, as shown below. Also, the estimated figure indicates a wider loss from the year-ago estimated loss of $1.59 per share.
SERV's EPS Trend
Image Source: Zacks Investment Research
Teradyne's earnings estimates for 2026 have declined in the past 60 days to $5.09 per share. This indicates expected earnings growth of 43.9% year over year.
TER’s EPS Trend
Image Source: Zacks Investment Research
Final Verdict: Serve Robotics vs. Teradyne
Serve Robotics and Teradyne both offer exposure to the long-term automation and robotics megatrend, but their fundamentals point to different near-term investment profiles. SERV is positioned for faster growth as autonomous delivery scales, supported by expanding fleet deployment, improving autonomy performance and multi-year platform partnerships that enhance utilization and monetization potential. Teradyne offers a more established, cash-generating model tied to AI-driven semiconductor demand, but faces variability across robotics and non-AI end markets, alongside softer earnings estimate momentum.
With Serve Robotics currently carrying a Zacks Rank #2 (Buy) and Teradyne having a Zacks Rank #3 (Hold), the former’s stronger growth outlook and improving fundamentals make it the more attractive robotics stock for investors seeking upside at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.