Teradyne, Inc. ranks near the peer group median, with a split structural profile: strong growth and profitability, but weak valuation and stability. That creates a tension: current price behavior looks stronger than the structural profile would suggest.
Peer-relative scores, weakest to strongest
Teradyne, Inc. provides semiconductor test equipment and automation solutions, focusing on AI-driven testing systems.
Teradyne is priced as an AI-cycle bet, not a secular compounder. Despite 87% year-over-year revenue growth driven by AI demand, the market treats this surge as a cyclical upswing, rapidly adjusting valuations in response to perceived shifts in the AI cycle rather than rewarding lasting stability. Because 70% of Teradyne’s revenue comes from AI-driven testing, even minor changes in demand prompt immediate re-pricing, resulting in 49.5% one-year volatility—well above the peer median. As a leader in AI test systems, Teradyne’s valuation is tightly tethered to cyclical swings in semiconductor demand, with the market quick to recalibrate its price in line with the prevailing AI narrative and quarterly results. A single disappointing AI-driven quarter is enough to trigger a sharp rerating.
Break down TER's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.