Semiconductor Equipment & Robotics Star Stocks Hit New Highs After Earnings Report, Outperforming Expectations

On a turbulent Tuesday in the US stock market, semiconductor testing equipment and robotics star stock Teradyne defied the trend, rising 13% to hit a new all-time high. On the news front, the company’s latest earnings report showed astonishing growth, demonstrating how testing equipment businesses are riding the wave of AI.

(Source: TradingView)

As background, Teradyne sells automatic testing equipment to semiconductor and electronic device manufacturers and also produces advanced robotic systems, including collaborative robots and mobile robots used to support manufacturing and warehousing operations.

In its earnings report released after the market close the previous day, Teradyne’s Q4 net profit reached $257.2 million, with a net earnings of $1.63 per share; compared to $146.3 million and $0.90 per share in the same period last year. Adjusted earnings per share were $1.80, far exceeding the consensus analyst estimate of $1.38 from FactSet.

Q4 revenue also increased 44% to $1.08 billion, surpassing analyst expectations of $970 million.

The company attributed the growth to AI-driven demand in semiconductor testing related to computing, networking, and storage, and expects demand in the computing sector to continue this year, with all business segments expected to grow.

At the earnings presentation, CEO Greg Smith stated that AI drove over 60% of the company’s revenue in Q4, and this proportion is expected to rise to 70% in the current quarter.

(Source: Earnings Call PPT)

For the current fiscal quarter, Teradyne expects revenue between $1.15 billion and $1.25 billion, significantly higher than the analyst consensus of $939 million; adjusted earnings per share are forecasted to be between $1.89 and $2.25, crushing the analyst expectation of $1.29.

With such data, the sharp rally on Tuesday was naturally expected.

Cantor Fitzgerald analyst C.J. Muse wrote in a recent report: “We were already very optimistic about this company before this earnings report, but… wow.”

Muse stated that driven by AI demand, Teradyne showed strong momentum across all business lines in Q4, and expects this momentum to continue into the current quarter. He specifically pointed out that semiconductor testing remains the company’s core focus, accounting for about 82% of total revenue, with strong AI-driven demand covering multiple areas including networking, computing, and storage applications.

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(Source: Cailian Press)