Teradyne, Inc.

Teradyne is the leading semiconductor automated test-equipment company — the specialty picks-and-shovels play that measures every chip before it ships, plus a growing industrial-robotics business (Universal Robots, Mobile Industrial Robots). The stock has been one of 2026's best-performing large-cap semi names, and just started to cool from the recent highs.

• The revenue re-acceleration is unmistakable: Q1 revenue grew 87% year-over-year to $1.28B — up from -11% just three quarters ago — with operating margins expanding to 37% and gross margins at 61%; the last four EPS prints beat consensus by 8-30%.
• The AI-cycle demand pull is durable: SoC test equipment demand from advanced-node volume (HBM, custom silicon) is what's driving the Q1 acceleration, and consensus models FY27 EPS of $10.44 growing from $7.60 FY26 — the FY28 estimate at $14.49 assumes the AI-test cycle continues past the current wave.
• The insider tape is real: CEO Gregory Smith's $1.7M sale on Aug 18 at $425 (well above the current $355 tape), director Matz's $510K in the same window — a modest cluster at prices near the recent highs, which the current 7% below-the-50-day pullback partly reflects.
• The valuation is where the cooling makes sense: at 66x trailing earnings and 15x sales, this is priced as if the AI-test cycle keeps accelerating from here — the recent $1B senior secured revolving credit facility (PNC, Aug 7) tells you management is preparing for another capex cycle, but the multiple leaves no slack.

The path if the compounding resumes is the Oct 27 Q3 print keeping revenue above +50% year-over-year with the SoC-test mix continuing — the tape breaks the cooling and re-rates on structural AI-test demand. What extends the pullback is a Q3 where advanced-node customer orders decelerate or the robotics-segment weakness persists; that's when a 201% one-year run gives back 15-20% before finding the 200-day support.