Teradyne(US:TER) ZACKS·2026-01-15 17:15Core Insights - Teradyne (TER) is experiencing growth in its Robotics division due to the increasing integration of AI, with AI-related products accounting for over 8% of robotics sales in Q3 2025, up from 6% in Q2 2025 [1][10] Robotics Division Performance - The company is positioning its Universal Robots (UR) cobots as the preferred platform for AI-driven work cell applications and is enhancing its Autonomous Mobile Robots (AMRs) with advanced AI features [2] - Service revenue within the Robotics division is also growing, reaching 14% of robotics sales in Q3 2025, an increase from 12% in Q2 2025, indicating a commitment to expanding revenue streams [3][10] - Robotics is identified as a key growth area for Teradyne, with expectations for continued growth, albeit slowly, as the company recovers from a low point in Q1 2025, and anticipates a seasonal increase in Q4 2025 due to higher demand for automation solutions [4] Competitive Landscape - Teradyne faces significant competition from companies like ABB and Advantest, both of which are expanding their presence in the AI sector [5] - ABB has made notable investments, such as in OctaiPipe, focusing on AI-driven cooling optimization software that can reduce data center cooling energy use by up to 30% [6] - Advantest has introduced the M5241 Memory Handler, a high-speed solution designed for AI and high-performance memory testing, with shipments expected in Q2 2026 [7] Stock Performance and Valuation - Teradyne's shares have increased by 150.3% over the past six months, significantly outperforming the Zacks Computer & Technology sector's growth of 18.8% and the Zacks Electronics - Miscellaneous Products increase of 25.8% [8] - The stock is currently trading at a forward 12-month Price/Sales ratio of 9.62X, higher than the industry average of 6.95X, indicating a premium valuation [12] - The Zacks Consensus Estimate for fiscal 2025 earnings is $3.51 per share, suggesting a year-over-year growth of 9.01% [14]