What Is Happening With Teradyne Stock?

Teradyne (TER)’s stock soared 51%, powered less by revenue gains and margin dips than a striking leap in investor optimism. Fueled by AI demand, consistent earnings beats, and a bullish analyst outlook, the rally hints at confidence far beyond the quarterly numbers—let’s dive into what’s truly driving the surge.

So what is happening here? The stock surged 51%, driven by a modest 3.3% rise in revenue, an 11% dip in net margin, and a sharp 62% jump in the P/E multiple. Let’s explore what’s behind these shifts.

Before we get into details of events that led to stock surge, here is what market wisdom says: The question isn’t where TER stock goes, but how your portfolio is positioned. See how Trefis High Quality Portfolio and Empirical Asset Management prepare you.

Here Is Why Teradyne Stock Moved

• Q3 Beat & Strong Q4: Q3 revenue $769M, EPS $0.85, beat estimates. Q4 revenue guidance $920M-$1B, above consensus.
• AI Demand Boost: Strong demand for System-on-a-Chip solutions for AI applications and memory in Semiconductor Test.
• Q1 Results & Buyback: Q1 revenue $686M, EPS $0.75 beat forecasts. Board approved $1B share repurchase program.
• Positive Analyst View: Multiple analyst price target raises, with a consensus “Moderate Buy” rating for TER.
• Q2 Earnings Beat: Q2 revenue $652M, EPS $0.57, both beat estimates. Semiconductor Test performed well.

Our Current Assesment Of TER Stock

Opinion: We currently find TER stock very unattractive. Why so? Have a look at the full story. Read Buy or Sell TER Stock to see what drives our current opinion.

Risk: A good way to gauge risk for TER stock is to check how deep its drops have been in past market sell-offs. It tumbled over 82% during the Dot-Com bubble burst and nearly 84% in the Global Financial Crisis. More recent shocks like the inflation surge knocked it down about 58%. Even less severe pullbacks—like the 2018 correction and the Covid crash—still saw drops around 40%. So, no matter the positives, TER hasn’t been immune when the broader market takes a hit.

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