Teradyne, Inc.

Teradyne, Inc. is an American company that designs, manufactures, and services automated test equipment for semiconductors and complex electronics, and produces collaborative and autonomous mobile robots for industrial applications, generating $3.19 billion in revenue in fiscal 2025. The company operates through three segments: Semiconductor Test, which accounted for roughly 80% of 2025 revenue; Product Test, covering circuit-board test, wireless test, silicon photonics, and defense and aerospace instrumentation; and Robotics, consisting of the Universal Robots collaborative arm and Mobile Industrial Robots autonomous mobile robot businesses.

This is a story about an industrial franchise that has repositioned itself squarely in the path of the most consequential capital spending cycle of the decade. Teradyne spent the years 2022-2024 enduring a semiconductor downcycle that compressed revenue 28% from the 2021 mobile-driven peak. Management used that period to invest in the platforms and customer relationships that would capture the coming wave of AI-driven test demand. In 2025, those investments began to pay off: Semiconductor Test revenue grew 19%, compute became the largest end market for the first time, and by the fourth quarter AI-related demand was driving more than 60% of company revenue. In the first quarter of 2026, that figure reached nearly 70%, and the company posted a record $1.28 billion quarter, surpassing the previous high-water mark set during the 2021 mobile boom.

The file turns on a single question: how much of the current AI-driven demand surge is durable secular growth, and how much is a cyclically hot semiconductor equipment market that will eventually cool. Teradyne's management has published a target earnings model built around a $12-14 billion ATE TAM and $6 billion of company revenue — roughly double the 2025 base. The model implies share gains in compute, sustained strength in networking and memory, a mobile recovery that does not need to reach prior peaks, and meaningful contributions from silicon photonics, merchant GPU test, and robotics. Every element of that model has plausible underpinnings. The question is whether they can all materialize together, and on what timeline.