Zacks Investment Ideas feature highlights Photronics and Teradyne

For Immediate Release

Chicago, IL – March 9, 2026 – Today, Zacks Investment Ideas feature highlights Photronics PLAB and Teradyne TER.

2 Lesser-Discussed AI Stocks Worth Keeping a Close Eye On

We’ve all become adjusted to a few of the mega-popular stocks involved in the broader AI trade, namely NVIDIA, Palantir, and Vertiv, to just name a small trio. But there are still several other companies that stand to benefit nicely from all the spending, including Photronics and Teradyne

PLAB’s Critical AI Role

Photronics, a current Zacks Rank #2 (Buy), is a global market leader in photomasks (stencils used to print tiny circuits onto semiconductor wafers) for lithographic imaging in semiconductor and flat panel display production.

PLAB shares broke out near the end of February after some consolidation, but the strength didn’t last very long. While the failed breakout is certainly not what you want to see from a sentiment standpoint, the company still plays a critical role in the AI frenzy, particularly in the chip-making supply chain.

Nonetheless, EPS revisions for its current fiscal year still remain highly positive, with a big positive revision hitting the tape near the end of Feb.

PLAB’s latest release showed record-high-end (advanced chips) revenue, with noted strength in the United States. Importantly, as AI chips become more complex, PLAB’s top line is poised to benefit significantly given its critical role in the broader industry.

The company’s CapEx has also grown significantly as it looks to expand its operations in the United States and South Korea, which will provide a solid growth runway as we wade deeper into the booming chip industry, fueled by the AI era. CapEx during its latest fiscal year totaled $188.1 million, compared with $131 million in FY24.

Teradyne Shares Soar

Teradyne manufactures equipment used by other companies to test chips. Unsurprisingly, the fastest-growing segment here is chips for AI data centers and accelerators, and more complex chips mean greater test demand, with AI chips among the most complex right now.

Up 40%, the stock has enjoyed a great year so far, particularly so relative to the S&P 500, which is down roughly 0.5% in 2026. Like Photronics, the company’s EPS outlook remains notably bright, sporting the highly-coveted Zacks Rank #1 (Strong Buy).

Bottom Line

Though much of the commentary surrounding AI stocks centers on NVIDIA and similar names, both Photronics  and Teradyne  play key roles, and their positive EPS revisions also paint a bullish picture. While both stocks have faced weakness over recent weeks, the overall outlook for both remains the same.

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