How Is Teradyne Stock Performance Compared to Other Semiconductor Stocks

How Is Teradyne Stock Performance Compared to Other Semiconductor Stocks

Wed, September 16, 2026 at 2:48 PM GMT+3 3 min read

• TER +3.51%

Teradyne, Inc. (TER) is a technology company that designs and manufactures automated test equipment and advanced robotics systems, with a market capitalization of approximately $51.5 billion. Based in North Reading, Massachusetts, the company's semiconductor and electronics testing solutions help customers maintain quality standards, while its collaborative and mobile robots support manufacturing and warehouse operations across businesses of various sizes.

Companies valued between $10 billion and $200 billion are generally classified as "large-cap stocks," and Teradyne comfortably fits this category. Its edge comes from its leading role in automated testing and robotics, serving several industries, from semiconductors to automotive and aerospace. Its diversified product portfolio, strong brand, stable revenue, healthy profit margins, and consistent cash generation support continued investment in technology and long-term growth.

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Despite its notable strengths, TER is currently 31.8% below its 52-week high of $487.91, reached on June 30, 2026. Over the past three months, TER shares have plunged 23%, slightly underperforming the VanEck Semiconductor ETF (SMH), which has declined 16.2% over the same period.

Shares of TER have climbed 72% year-to-date and 191.8% over the past 52 weeks, with both gains slightly exceeding those of SMH, which has risen 50.5% year-to-date and 76.5% over the past 52 weeks.

TER has remained above its 200-day moving average for the past year, signaling relative longer-term strength. However, the stock fell below its 50-day moving average in mid-September, suggesting that short-term momentum is beginning to weaken.

TER's strong performance may partly reflect a sharp acceleration in business momentum, supported by robust semiconductor and AI-related demand. On July 29, Teradyne reported second-quarter revenue of $1.33 billion, up 103.8% year over year and above the high end of its guidance. Semiconductor Test revenue reached $1.12 billion, while Memory revenue hit a record level, driven by continued strength in DRAM and a resurgence in NAND final testing. These results may have reinforced investor confidence in Teradyne's growth prospects.

The company's outlook also remained positive, with management citing robust AI-related demand in its third-quarter guidance and pointing to a rapid increase in wafer fab equipment investment as a potential driver of growth in 2027 and beyond. Teradyne expects third-quarter revenue of $1.2 billion to $1.3 billion, suggesting that the strong demand environment could persist in the near term. Following the Q2 results, TER shares jumped 14.4% in the following trading session, potentially reflecting a positive market reaction to the strong results and outlook.

In the competitive semiconductor equipment & materials industry, Lam Research Corporation (LRCX) has underperformed TER, gaining 58.2% year-to-date and 127.2% over the past 52 weeks.

Wall Street analysts are bullish on TER's prospects. The stock carries a consensus "Strong Buy" rating from the 16 analysts covering it. The mean price target of $454.07 implies a 36.4% premium to its current price.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com