Feb. 2: Teradyne on Monday forecast first-quarter revenue and profit that beat Wall Street estimates, driven by multibillion-dollar investments by technology companies in expanding data centers to enable AI capabilities, sending its shares up more than 20% in extended trading.
The increasing complexity of AI compute and memory chips and accelerating production times have prompted chipmakers to increase capital spending on test equipment, benefiting Teradyne.
Its equipment is used to test the quality and reliability of semiconductors. Analysts have noted that improving utilization rates at major chip factories often precede new orders for test equipment.
“In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in AI-driven computing,” said CEO Greg Smith.
Teradyne provides automated test equipment for a range of chips, from complex SOCs used in smartphones and AI data centers to memory chips.
The company, whose customers include Qualcomm and Texas Instruments, forecast first-quarter revenue of between $1.15 billion and $1.25 billion, above analysts’ average estimate of $934.5 million, according to data compiled by LSEG.
It forecast adjusted earnings per share of between $1.89 and $2.25 for the quarter, ahead of an average estimate of $1.26.
Teradyne reported fourth-quarter revenue of $1.08 billion, beating an estimate of $973.2 million, fueled by AI-related demand for compute, networking and memory within its semi-testing business.