Teradyne Drives Robotics With AI: Can It Outpace KLAC and COHU?

Teradyne TER is benefiting from a surge in AI-driven demand, which is fueling robust growth across its robotics and semiconductor testing businesses. In the second quarter of 2026, Robotics revenues reached $100 million, marking a 33% year-over-year increase and a 9% rise sequentially. More than 60% of Teradyne’s revenues are now AI-driven, underscoring the effectiveness of its 'wafer to AI data center' strategy.

The fastest-growing segment within robotics is electronics manufacturing and semiconductors, which includes AI data centers. Electronics manufacturing and semiconductor revenues within Robotics surged 50% from the first quarter, making it the largest end market segment in this group. This growth is closely tied to the ongoing build-out of AI data centers and the broader trend toward automation in manufacturing and assembly processes. U.S. sales rose to 32% of Robotics revenues, and a U.S. manufacturing center remains on schedule to open later in 2026. 

Compared to competitors like KLA Corporation KLAC and Cohu COHU, Teradyne’s integrated strategy stands out. While KLAC excels in process control and inspection, and COHU is strong in test handlers and automation, Teradyne’s ability to address both semiconductor testing and robotics for assembly and test automation gives it a unique edge. The company is also investing in next-generation products and strategic acquisitions, such as Quantifi Photonics and the Multilane Test Products JV, to address emerging needs in optical, networking and board test for AI applications.

Management expects Robotics to grow in the second half as data center construction drives more rack shipments and automation demand at contract manufacturers and original design manufacturers. Over time, robot-assisted test, assembly, and data center operations can widen the addressable market beyond traditional factory automation.

How Competitors Fare Against TER

Teradyne is facing stiff competition from companies such as KLA and Cohu. Both KLA and Cohu are expanding their footprint in the AI space.

KLA is benefiting from the growing demand for AI through its leadership in process control and its ability to address growth markets in wafer fab equipment, including high-bandwidth memory and advanced packaging.

In May 2026, Cohu received approximately $5 million in multiple orders for its Diamond X platform from a leading semiconductor manufacturer. The systems will support testing of next-generation GaN power devices for AI data centers, strengthening Cohu’s position in AI infrastructure and high-efficiency power semiconductor testing.

TER’s Share Price Performance, Valuation and Estimates

Teradyne shares have surged 108% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 16.8% and the Zacks Electronics - Miscellaneous Products increase of 50.2%.

TER Stock Performance

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TER stock is trading at a premium with a forward 12-month Price/Sales of 11.13X compared with the Computer & Technology sector’s 6.48X. TER has a Value Score of F.

TER Valuation

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The Zacks Consensus Estimate for 2026 earnings is pegged at $9.10 per share, which has increased 26.38% over the past 30 days. This suggests 129.80% year-over-year growth.

Teradyne, Inc. Price and Consensus

Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote

Teradyne currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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