Teradyne (TER) Integrates AI to Accelerate Growth in Test Business

Teradyne, Inc. (NASDAQ:TER) is one of the best tech stocks to buy, according to Cathie Wood. On September 8 at the Goldman Sachs Communicopia + Technology Conference 2025, CEO Greg Smith reiterated that the company is in a robust position in the AI-driven market.

Teradyne (TER) Integrates AI to Accelerate Growth in Test Business

The company has started leveraging artificial intelligence to drive growth in the semiconductor sector. Part of the strategy entails focusing on faster-growing segments despite weakness in Europe. According to the CEO, the company is staring at tremendous opportunities in the test business.

“Right now, for that test business, both product test and semi-test, we are in sort of the beginning of a significant growth period, driven primarily by AI, but it extends across all the different segments of product test and semiconductor test,” Smith said.

While robotics is a new business, the company is pursuing opportunities in advanced robotics as it looks to capture secular growth. In the robotics segment, the company is pivoting more towards logistics, Pharma, and electronics as it eyes revenue from a major customer in 2027.

Teradyne, Inc. (NASDAQ:TER) designs, develops, and manufactures automated test equipment (ATE) and advanced robotics systems for the manufacturing and electronics industries. Their test solutions verify that semiconductors and complex electronic products function correctly.

While we acknowledge the potential of Teradyne, Inc. (NASDAQ:TER) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TER and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.