Teradyne (TER) Hits New All-Time High on Strong Revenues, Better-Than-Expected Growth Estimates

We recently published 10 Stocks Defying Wall Street Slump; 8 Hit Fresh Highs. Teradyne, Inc. (NASDAQ:TER) is one of the best-performing stocks on Thursday.

Teradyne jumped to a new all-time high on Wednesday, as investors cheered a strong revenue performance and a higher growth outlook that beat Wall Street estimates.

At intra-day trading, Teradyne, Inc. (NASDAQ:TER) climbed to its highest price of $177.24 before trimming gains to finish the day just up by 20.47 percent at $173.94 apiece.

This followed a revenue growth outlook of $920 million to $1 billion for the full-year 2025 period, better than the $816.3 million as projected by analysts.

Meanwhile, Teradyne, Inc. (NASDAQ:TER) saw revenues in the third quarter of the year increase by 4.3 percent to $769 million from the $737 million in the same period last year. Of the total revenues, $606 million came from semiconductor tests, $88 million from product tests, and $75 million from robotics.

However, net income remained down by 18 percent to $119 million from the $145.6 million year-on-year.

“Our semiconductor test group delivered third quarter sales that exceeded expectations, driving company sales and profit to the high end of our Q3 guidance range,” said Teradyne, Inc. (NASDAQ:TER) CEO Greg Smith.

“As we look ahead to Q4, AI-related test demand remains robust across compute, networking and memory segments. Q4’25 sales are expected to increase 25 percent sequentially and 27 percent from Q4’24,” he added.

While we acknowledge the potential of TER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.