TER - Teradyne: Expect The Rally To Continue

2024-06-07 07:45:01 ET

Summary

• Teradyne should continue rallying for another two to three years on several growth catalysts.
• The semiconductor industry is poised to grow 16% and 12% in 2024 and 2025, creating strong demand for semiconductor testing equipment.
• The high demand for AI GPUs and HBM memory chips should give TER's revenues a strong boost in 2025 and 2026.
• The Company's robotic division will benefit from the collaboration with Nvidia.

The recovery in the automated testing market

Last May, I had written about Teradyne (TER), predicting that the cyclical trough in the semiconductor Automated Test Equipment (ATE) market should be taken advantage of. Last July, I wrote about Advantest (ATEYY) reiterating a buy , advising that even they had a tough quarter, they would recover in the second half of 2023....

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