Teradyne, Inc. (TER) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Teradyne delivers strong Q3 earnings beat with 18% revenue sequential growth fueled by AI-driven semiconductor test demand, with an 8.6% price rise and positive technical momentum underpinning short-term growth potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong margins ⢠Deteriorating liquidity ⢠Stretched valuation TER combines strong 2024 profitability and historically robust FCF with materially weakened liquidity and operating cash generation in 2025Q3, modestly higher leverage, and a much richer valuation that increases earnings sensitivity.
Price Behavior
Key Price Behavior Insights: ⢠Accelerating uptrend ⢠Strong $190 support ⢠Breakout above $220 Support Level: $190 (primary) and $220 (new support) Resistance Level: $220 (prior resistance) Over the last month TER has staged an accelerating uptrend from about $198.90 to $229.27 with buyers defending ~$190 and a breakout above prior resistance near $220, though sharp earlyâJanuary gains raise shortâterm pullback risk.
Sentiment & News
Key News Insights: ⢠AI infrastructure surge ⢠Institutional inflows ⢠Valuation/cycle risk Teradyne is riding strong AI-driven demand and institutional buying (UltraFLEXplus, upbeat Q4 outlook) but faces elevated valuations and cycle risk ahead of its Feb 2 Q4/2025 results.
AI Summary
TER has shifted from a cyclical equipment recovery to an AI-capex beneficiaryâits product traction and hyperscaler demand warrant upside but that upside is already priced in and funded by deteriorating cash flow and stretched working capital, making execution on capacity and cash-conversion the single biggest make-or-break factor. Action: watch near-term operating cash flow, FCF, inventory turns and the upcoming Q4/Feb guidance closely; size new positions only after sequential OCF/FCF improvement or clear bookings-to-cash conversion.
Description
Teradyne, Inc. develops, manufactures, and supports automated test equipment and related systems for customers worldwide across semiconductor, system test, industrial automation, and wireless test markets. Its semiconductor business supplies wafer- and package-level test platforms for memory, analog/mixed-signal and high-volume devices, while other segments provide defense and storage test systems, collaborative robots and autonomous mobile robots for manufacturing, and wireless test solutions under the LitePoint brand. The company serves integrated device manufacturers, fabless firms, foundries and assembly/test providers; it was incorporated in 1960 and is headquartered in North Reading, Massachusetts.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 22 | Dec 29 | TER | Teradyne, Inc. | Teradyne delivers strong Q3 earnings beat with 18% revenue sequential growth fueled by AI-driven semiconductor test demand, with an 8.6% price rise and positive technical momentum underpinning short-term growth potential. | Closed | +0.1% |