Teradyne, Inc. (TER): A Bull Case Theory

We came across a bullish thesis on Teradyne, Inc. on X.com by Arya__Deniz. In this article, we will summarize the bulls’ thesis on TER. Teradyne, Inc. 's share was trading at $117.82 as of September 10th. TER’s trailing and forward P/E were 40.91 and 23.70 respectively according to Yahoo Finance.

Teradyne (TER) is often categorized as a cyclical semiconductor test-equipment supplier, but this view overlooks the company’s growing robotics franchise, which management has highlighted as its long-term vision. By integrating AI, industrial automation, and electrification themes such as EV and ADAS, Teradyne is positioning itself as more than just a test-equipment player.

The company has built a strong robotics portfolio through acquisitions of Universal Robots, Mobile Industrial Robots, Energid, and AutoGuide, placing it at the center of structural growth drivers like Amazon’s warehouse automation rollout and accelerating automation across automotive factories. These catalysts, including Amazon’s Vulcan robot deployment and Nvidia-driven advances in robotics AI, remain underappreciated in the stock’s current valuation.

Near-term, the semiconductor test downturn, exacerbated by auto and industrial weakness and trade-related delays, has weighed on the share price. Trading around $110, Teradyne sits near multi-year lows, reflecting cyclical pressures rather than the value of its robotics platform. While peers such as Fanuc and Yaskawa trade at 12–17x EV/EBITDA, Teradyne’s ~24x multiple is tied primarily to its existing semiconductor and robotics businesses, with little recognition for potential upside. A meaningful re-rating could occur once robotics adoption gains traction, especially with high-profile contracts and accelerating factory automation, pushing the stock toward automation technology multiples of 30–35x EV/EBITDA.

With virtually no debt and a healthy balance sheet, Teradyne offers asymmetric upside. The combination of depressed sentiment from semiconductor cyclicality and underappreciated long-term robotics value creates an attractive entry point with significant potential for rerating as adoption accelerates.

Previously we covered a bullish thesis on Lam Research Corporation (LRCX) by The Antifragile Investor in May 2025, which highlighted its critical role in semiconductor manufacturing and high-margin service flywheel. The company’s stock price has appreciated approximately by 29.67% since our coverage. This is because Lam’s entrenched position and recurring revenues held firm. The thesis still stands. Arya__Deniz shares a similar view but emphasizes Teradyne’s robotics franchise and automation catalysts.

Teradyne, Inc.  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held TER at the end of the second quarter which was 49 in the previous quarter. 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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Disclosure: None.