New York, Feb 3, 2026, 13:27 EST — Regular session
- Shares of Teradyne jumped after the company issued a forecast that beat expectations, driven by rising demand for AI-powered chip testing.
- The company posted fourth-quarter results that exceeded its own guidance range.
- Traders are now focused on whether the move sticks, turning their attention to orders and momentum heading into 2026.
Teradyne shares jumped 11% to $277.00 in midday trading Tuesday, following a forecast for first-quarter revenue and profit that topped Wall Street expectations. The stock saw a wide range, hitting a high of $312.14 and a low of $249.54.
This matters because Teradyne is tightly linked to the chipmakers’ spending cycle. When they ramp up capacity, particularly for high-end processors and memory for data centers, they invest heavily in test equipment to detect defects and boost yields.
AI is driving the momentum once more. Teradyne’s upbeat forecast hinges on strong demand for compute and memory, fueled by big tech’s ongoing data-center buildouts. At the same time, the surge in chip launches—with growing complexity—has boosted the need for extensive testing, Reuters noted.
Teradyne late Monday posted fourth-quarter revenue of $1.083 billion and non-GAAP earnings of $1.80 per share, driven by $883 million in Semiconductor Test sales. The company reported full-year 2025 revenue at $3.19 billion, a 13% increase over 2024. The earnings release was also included in a U.S. securities filing.
Teradyne’s CEO Greg Smith attributed the strong results to “AI-related demand in compute, networking and memory” within Semiconductor Test. The company expects first-quarter revenue between $1.15 billion and $1.25 billion, with non-GAAP net income per diluted share forecasted at $1.89 to $2.25. Teradyne, Inc.
On the Street, Cantor Fitzgerald analyst C.J. Muse called the earnings a “significant beat and raise,” saying, “We were bullish into this report, but … wow.” Benzinga
The rally shifted attention back to test and measurement stocks following Monday’s strong showing. Teradyne led the pack, outperforming peers like Keysight Technologies, Fortive, and Cohu, MarketWatch data shows.
Still, the setup isn’t without risk. Teradyne’s fate hinges on capital spending, which can shift abruptly if chipmakers halt orders, delay factory expansions, or revise budgets after a demand spike. A rally fueled by guidance can evaporate fast if bookings fail to materialize.
Investors are set to watch closely for new order trends and customer sentiment in the coming weeks. Key dates include SEMICON Korea on Feb. 11 in Seoul and the Chiplet Summit on Feb. 17 in Santa Clara.
