Teradyne Rises on AI Demand, Bullish Inflows

TER designs, develops, and manufactures automated test equipment for semiconductors and electronics as well as advanced robotics systems, making it a key player in the current AI wave. The company’s third-quarter fiscal 2025 report showed $769 million in revenue (near upper end of guidance), non-GAAP per-share earnings of $0.85 (near upper end of guidance), as well as fourth-quarter revenue and non-GAAP EPS guidance of up to $1 billion and $1.46, respectively. TER reports next on Jan. 28.

No wonder TER shares are up 57.7% in the last year. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Inflows Find Teradyne

Institutional volumes reveal plenty. In the last year, TER has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in TER shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Teradyne.

Teradyne Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TER has had strong sales growth and profits:

• 1-year sales growth rate (+5.4%)
• Profit margin (+19.3%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +47.6%.

Now it makes sense why the stock has been generating Big Money interest. TER has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Teradyne has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s had 22 Big Money outlier inflow signals in the last decade and is up 881% since the first one. The blue bars below show when TER was a top pick in the last 10 years…Big Money is in for the long haul:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Teradyne Price Prediction

The TER action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in TER at the time of publication.

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