Teradyne shares fell by 1.08% in the latest session, marking the first decline in five trading days. This dip contrasts with the company’s 19% rally over the past month and comes as the broader semiconductor index advanced by 2.5%. Trading volume yesterday was 30% above its 30-day average, suggesting heightened investor interest in the name despite the pullback.

In its latest quarterly update, Teradyne reported that sales in its Robotics segment grew by 28% year-over-year to $380 million, driven by strong uptake of AI-enhanced test and inspection systems. Service revenue for robotics also climbed 32% to $120 million, reflecting expanding aftermarket support contracts with major electronics manufacturers. The segment now contributes roughly 35% of total company revenue, up from 28% a year ago.

Following the quarter, three major brokerages raised their 12-month target by an average of 8%, citing improved margin outlook and higher recurring service revenues. At current multiples, the stock trades at 18 times forward earnings, compared with the five-year average of 20 times. Analysts expect free cash flow to exceed $550 million this fiscal year, representing nearly 8% of market capitalization.