Key takeaways
- Teradyne Inc stock trades near $338.59 on the NASDAQ, with a market capitalization of roughly $52.94 billion and a market cap ranking inside the top tier of chip equipment names.
- The 52-week range of $109.56 to $487.91 shows just how violently this name moves, with a 52-week return of about 180%.
- Revenue in the last quarter hit a record $1.33 billion, up 104% year on year, and net income surged as margins expanded.
- More than 60% of revenue now traces back to artificial intelligence demand, which makes TER a direct proxy for AI capital spending.
- Analyst ratings lean bullish, with an average target of $446.47, but a trailing P/E ratio near 46x means expectations are already high.
Teradyne Inc stock price today: where TER shares stand
TER Teradyne trades on the NASDAQ under the ticker TER, and Teradyne Inc stock has become one of the most closely watched names in the semiconductor equipment space. Recently priced near $338.59 with a market cap of about $52.94 billion, TER has surged roughly 180% over the past year as AI-driven demand and record revenue growth pulled more investor attention to the stock.
For investors and traders evaluating semiconductor equipment shares, this section breaks down TER’s price action and stock performance, Teradyne’s semiconductor test, robotics, and product test businesses, recent financial results, valuation metrics, analyst ratings, key risks, and practical points for tracking or trading the shares. TER matters in 2026 because it is widely viewed as a direct proxy for AI infrastructure spending, which makes its valuation and momentum especially relevant for anyone weighing growth upside against semiconductor cycle risk.
Current price, previous close and the 52-week range
| Metric | Latest reading |
|---|---|
| Current price | About $338.59 |
| Previous close | $341.62 |
| Day range | $326.00 to $341.61 |
| 52-week range | $109.56 to $487.91 |
| Market capitalization | $52.94 billion |
| 52-week return | About +181% |
| Dividend yield | 0.15% |
| Shares outstanding | 156.34 million |
| Beta (5 year) | 1.79 |
| Average volume | Roughly 1.7 million shares |
The 52-week range tells the story better than any single stock price. A 52-week low of $109.56 against a 52-week high of $487.91 means TER shares have travelled across a band more than four times wide in twelve months. That is the trade-off investors accept in exchange for exposure to one of the purest AI infrastructure suppliers on the market.
Teradyne Inc engages in what, exactly?
Teradyne Inc engages in the design, manufacturing and marketing of automated test systems, product test instruments and robotics products used by semiconductor manufacturers, electronics firms and industrial customers worldwide. Put plainly: when a chip comes off a production line, something has to prove it works before it ships. Teradyne builds that something.
The company markets semiconductor test products and product test instruments that validate silicon at the wafer level and again at device package testing, covering logic, analogue, mixed-signal and memory devices. It tests memory devices such as DRAM and flash memory, and its equipment sits behind everything from data-centre accelerators to the electronic game consoles in your living room.
Teradyne serves integrated device manufacturers, fabless companies, and semiconductor assembly and test subcontractors. Revenue is spread across Asia Pacific, Europe, the Middle East and the Americas, with Taiwan, Korea and China carrying particular weight. The company operates across compute, memory, wireless, automotive and defence end-markets, which softens the blow when a single vertical slows.
Headquartered in North Reading, Massachusetts since 1960
- Founded in 1960 and headquartered in North Reading, Massachusetts, giving it more than six decades of domain expertise
- Chief executive: Greg Smith
- Employees: approximately 6,600
- Sector: Semiconductor Equipment and Materials
- Listing: NASDAQ, ticker TER
The following business segments drive Teradyne Inc
Teradyne Inc organises operations into the following business segments: semiconductor test, robotics and product test. Each carries a different margin profile, and the mix explains much of how the market values TER shares today.
| Segment | Last quarter revenue | Year-on-year growth | Share of quarter |
|---|---|---|---|
| Semiconductor test | $1,122 million | +128% | 84% |
| Product test | $107 million | +26% | 8% |
| Robotics | $100 million | +33% | 8% |
Semiconductor test segment: the engine room
The semiconductor test segment designs and sells automatic test systems for logic, analogue and memory chips. That range includes the UltraFLEX family, the flex test platform systems at the core of its system-on-chip business, the Magnum platform for memory, and the ETS platform aimed at cost-sensitive volume semiconductor devices.
Within the last quarter, system-on-chip revenue reached $843 million, memory set a record at $212 million on DRAM strength and a NAND final-test recovery, and integrated system test added $67 million. Compute now represents roughly 70% of system-on-chip revenue and grew close to 600% year on year, which is the clearest signal yet that semiconductor test, robotics and product test are no longer moving to the same cycle.
Robotics segment: collaborative robotic arms and autonomous mobile robots
The robotics segment covers collaborative robotic arms, autonomous mobile robots and advanced robotic control software sold into logistics, e-commerce and factory automation. After a soft patch tied to weak industrial capital spending, robotics products returned to double-digit growth in 2026. Cobots and mobile fleets remain a small slice of group revenue, yet they give the business a second growth engine that is not tied to chip capex.
Product test and other segments
Product test includes operations related to circuit board test, wireless test systems, system level testing and silicon photonics testing, serving defence, aerospace, automotive and consumer electronics customers. These other segments are smaller, but they diversify a business that would otherwise live and die by demand for silicon wafers.
Last quarter in numbers: record revenue, record net income
Teradyne delivered its second consecutive record quarter in Q2 FY26. Revenue of $1.33 billion rose 104% year on year and 4% sequentially, comfortably ahead of the $1.22 billion consensus. GAAP earnings came in at $2.38 per diluted share, with non-GAAP earnings of $2.47 against just $0.57 a year earlier.
Net income, margins and cash flow
| Measure | FY2024 | FY2025 | Trailing twelve months |
|---|---|---|---|
| Revenue | $2.82 billion | $3.19 billion | $4.46 billion |
| Net income | $542 million | $554 million | $1.15 billion |
| Operating cash flow | $672 million | $674 million | $1.07 billion |
| Free cash flow | $474 million | $450 million | $800 million |
| Gross margin | 58.5% | 58.2% | 59.8% (Q2 non-GAAP) |
Trailing net income of $1.15 billion is up roughly 145%, well ahead of the 58% rise in revenue. Net income growing faster than sales is the signature of operating leverage, and it is why the market has repriced the shares so aggressively. Non-GAAP operating margin reached 33.7% in the quarter, and free cash flow conversion improved as the installed base generated more recurring services revenue.
The company guided Q3 FY26 revenue to a range of $1.20 billion to $1.30 billion, with non-GAAP earnings of $1.85 to $2.15 per share and gross margin of 58% to 59%.
Valuation: what the P/E ratio and market cap are really saying
| Multiple | Reading |
|---|---|
| Trailing P/E ratio | 46.5x |
| Forward P/E | 34.7x |
| Price to sales | 11.9x |
| Price to book | 15.4x |
| EV/EBITDA | 34.9x |
| PEG ratio | 0.97 |
| Dividend yield | 0.15% |
A market cap of roughly $53 billion places TER firmly in large-cap territory, and the market capitalization has more than doubled in a year. That is a striking re-rating for a company valued at a fraction of the figure eighteen months ago. The trailing multiple looks demanding, yet the forward multiple compresses sharply because consensus expects earnings to keep climbing. A PEG ratio near 1.0 suggests the rating is broadly in line with expected growth rather than detached from it. The dividend yield of 0.15% is a rounding error, which tells you capital returns arrive through buybacks and reinvestment, not income.
Analyst ratings and price targets for TER shares
Coverage is unusually constructive. Across 17 analysts the consensus sits at Buy, with 11 strong buy ratings, one buy and five holds. There are no sell ratings on the published forecast tables.
- Average price target: $446.47
- High target: $550.00
- Low target: $350.00, which would still leave a market cap above $54 billion
- Consensus FY26 revenue: about $5.14 billion, implying roughly 61% growth
- Consensus FY26 earnings: about $9.09 per share
Take note that analyst ratings can turn quickly. On 21 August 2026 one broker moved TER to a neutral rating with a $420 target, arguing the risk-reward had evened out after a long run and that the biggest opportunities in merchant GPU test and photonics land closer to 2028. Rating changes like that can pressure the share price without changing the multi-year thesis.
The bull case for Teradyne Inc stock
- Structural AI demand. Over 60% of revenue is now AI-linked, spanning accelerators, high-bandwidth memory and networking silicon.
- A genuine moat. Switching costs among test providers are high, qualification cycles are long, and relationships with test subcontractors run for decades.
- Operating leverage. Incremental revenue drops through at high margins, which is why net income growth is outpacing sales growth so dramatically.
- Robotics optionality. Collaborative robotic arms and mobile fleets offer a second engine if factory automation adoption accelerates.
The bear case: points to take note of
- Precaution on valuation. At 46x trailing earnings, the shares price in a lot of good news. Any guidance wobble can trigger a sharp de-rating.
- Cyclicality is real. Semiconductor capital equipment has always been cyclical, and inventory corrections have historically produced steep drawdowns.
- Customer and geographic concentration. Taiwanese and Chinese customers accounted for roughly half of recent revenue, so export controls and trade policy carry outsized influence.
- Robotics execution. This division has yet to prove consistent growth at scale, and industrial capex remains hard to forecast.
None of this makes TER a poor business. It simply means position sizing and risk management matter more than usual with a name carrying a beta of 1.79.
How to track Teradyne Inc stock without drowning in noise
Most charting platforms let you long press a candle on mobile to read the exact open, high, low and close, while the pin, tooltip and alert menu sits alongside it. Choose an anchor time frame first, weekly for the trend and daily for entries, then delete, right click or edit any alert that no longer reflects your view. The 50-day moving average near $374 and the 200-day near $315 are the two levels most traders watch, so a golden cross or death cross signal is worth monitoring.
For context on the broader market, TER is a heavyweight within the NASDAQ 100, so index moves and single-stock moves often feed each other. Pairing top-down and bottom-up fundamental analysis helps separate a sector-wide repricing from a company-specific one.
Upcoming events and metrics worth diarising
- Q3 FY26 results, expected in late October 2026
- Book-to-bill and order commentary from the semiconductor test segment
- Sequential robotics segment revenue and margin trends
- Wafer fab equipment spending forecasts, which lead orders by several quarters
- Any change to export controls affecting Asia Pacific shipments
Logging those dates alongside your own price alerts keeps the noise down and stops a results day from catching you out.
Frequently asked questions
Is Teradyne Inc stock a buy right now?
That depends entirely on your time horizon and risk tolerance, and nothing here is personal advice. The bull case rests on AI-driven test demand and expanding margins. The caution is the valuation and the cyclicality of chip capex. Compare the current price with the $446.47 average target and the $350 low target, then decide whether the spread compensates you for a beta of 1.79.
What does Teradyne Inc actually make?
Teradyne Inc engages in building automated test equipment and robotics. Its products and services span automatic test systems for chips, circuit board test and wireless test systems, plus cobots and autonomous mobile robots. The design, manufacturing and marketing of these products and services is run from North Reading, Massachusetts.
Why is TER stock so volatile?
Because the company sits at the intersection of two volatile forces: semiconductor capital spending cycles and AI sentiment. Orders can shift quickly when customers adjust capacity plans, so the stock price often moves far more than revenue does in either direction.
Does Teradyne pay a dividend?
Yes, but it is small. The dividend yield sits near 0.15%, reflecting a preference for buybacks and research spending over income distribution. Income-focused investors should take note that this is a growth holding, not a yield holding.
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Important reminder: semiconductor and test equipment shares can be volatile. Figures in this article are indicative and dated, so always verify them with your broker and third party sources before making any decision. This article is educational and does not constitute personalised investment advice.
