Teradyne Stock Surges Following AI-Driven Gains and Magnum 7H Launch

Teradyne, Inc. (NASDAQ:TER) is one of the 11 Best Short-Term Stocks to Invest in.

The company experienced an upward movement in stock price following better performance in the Semiconductor Test segment and the launch of Magnum 7H.

Headquartered in Massachusetts, Teradyne, Inc. (NASDAQ:TER) designs, manufactures, and sells automated test equipment for semiconductors and electronics. The company also focuses on robotics solutions, including collaborative and mobile robots through subsidiaries like Universal Robots and Mobile Industrial Robots.

On July 29, 2025, Teradyne, Inc. (NASDAQ:TER) reported its second-quarter 2025 results, with revenue of $652 million surpassing the company’s mid-point guidance ranges. The Semiconductor Test segment, which generated $492 million in revenue due to System-on-a-Chip (SOC) applications for artificial intelligence (AI), was the primary contributor. The company’s CEO, Greg Smith, has made the following statement:

“The exact timing of program ramps and capacity adds remain uncertain, but we believe that AI will drive strong second half performance for Teradyne.”

Furthermore, on August 4, 2025, Teradyne launched the Magnum 7H, a next-generation memory tester specifically designed for High Bandwidth Memory (HBM) devices integrated with GPUs and accelerators in high-performance, generative AI servers. Currently, in the production and shipping process of the Magnum 7H system to HBM manufacturers, the company claims that its new launch solidifies its market leadership by supporting current and future HBM technologies.

Teradyne, Inc. (NASDAQ:TER)’s stock price jumped 18.09% this week, hinting at strong near-term sentiment despite a 12.17% drop over the past year.

While we acknowledge the potential of TER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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