For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Teradyne (TER) ten years ago? It may not have been easy to hold on to TER for all that time, but if you did, how much would your investment be worth today?
Teradyne's Business In-Depth
With that in mind, let's take a look at Teradyne's main business drivers.
Headquartered in North Reading, MA, Teradyne designs, develops, manufactures and sells automated test equipment and robotics products. Its automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries.
Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) that are used by global manufacturing, logistics and industrial customers.
Teradyne's semiconductor test products are used both for wafer level and device package testing of semiconductor devices. Its product portfolio comprises the FLEX Test platform, J750 test system, Magnum test platform and ETS platform, each tailored for specific semiconductor testing needs.
The company’s system Test segment is comprised of three business units: Storage Test, Defense/Aerospace and Production Board Test. Wireless Test business operates under the LitePoint brand name and provides test solutions utilized in the development and manufacturing of wireless devices and modules.
The Robotics segment comprises two business units: Universal Robots and Mobile Industrial Robots (MiR).
Universal Robots offers a variety of collaborative robot models, including the UR3, UR5, UR10, UR16 and UR20, each with different weight carrying capacity and arm reach. MiR offers four collaborative autonomous mobile robot models, MiR100, MiR250, MiR600 and MiR1350, each with a different payload carrying capacity.
Teradyne reports revenues primarily under four segments: Semiconductor Test, System Test, Robotics, and Wireless Test. In 2024, the company reported revenues of $2.82 billion.
Teradyne competes globally with key rivals like Advantest, Cohu, Keysight, Test Research, SPEA, Rohde & Schwarz, Anritsu, KUKA, ABB, FANUC, Yaskawa, Techman, Doosan, AUBO, Omron, Fetch, OTTO Motors, Vecna, Seegrid and Balyo.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Teradyne, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in January 2016 would be worth $10,702.10, or a gain of 970.21%, as of January 6, 2026, and this return excludes dividends but includes price increases.
The S&P 500 rose 242.24% and the price of gold increased 290.52% over the same time frame in comparison.
Analysts are forecasting more upside for TER too.
Teradyne shares have outperformed the industry in the trailing 12-month period. It benefits from strong AI-related demand that is driving significant investments in cloud AI build-out as customers accelerate the production of a wide range of AI accelerators, networking, memory, and power devices. AI compute is witnessing rapid technological progress, which is bringing rapid transformation to design, process, and packaging technologies for AI compute. This trend bodes well for TER's long-term prospects. Strong demand for the UltraFLEXplus system, which is suitable for high-performance processors and networking devices, is expected to drive top-line growth. UltraFLEXplus enables customers to reduce test development times, driving up high-efficiency volume production. However, sluggishness in mobile, auto, and industrial end-markets is a headwind.
Over the past four weeks, shares have rallied 8.13%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Teradyne, Inc. (TER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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