Teradyne Shares Surge 87.9%, Q4 Semiconductor Test Sales Reach $883M on AI Growth
Teradyne shares climbed 87.9% over the past three months, outperforming a 0.1% sector decline and peer gains of 29.1%–43.4% on surging AI infrastructure demand. In Q4 2025, semiconductor test revenue reached $883 million, up 45% year-over-year and 46% sequentially, and AI applications accounted for more than 60% of total revenue.
1. Share Performance and AI Demand
Teradyne shares gained 87.9% over the past three months, far outpacing the technology sector decline of 0.1% and peer rallies of 29.1%–43.4%. This surge is driven by strong AI infrastructure investments as customers accelerate production of accelerators, networking, memory, and power devices.
2. Q4 2025 Revenue Breakdown
Semiconductor test sales reached $883 million in the fourth quarter, marking a 45% year-over-year increase and a 46% sequential rise. AI-driven applications comprised over 60% of total revenue, while the Robotics Group saw a 19% quarter-over-quarter revenue gain led by deployments for a major e-commerce customer.
3. Q1 2026 Guidance and Valuation
Management forecasts first-quarter 2026 revenues between $1.15 billion and $1.25 billion, reflecting roughly 75% year-over-year growth, with non-GAAP EPS projected at $1.89–$2.25. The stock trades at a forward 12-month Price/Sales ratio of 11.78x, above the industry average of 8.33x.