- Teradyne projects first-quarter results above Wall Street estimates thanks to robust AI-driven demand
- Fourth-quarter results beat expectations, highlighting strength in semiconductor test markets
What happened
Teradyne, a Massachusetts based supplier of automated test equipment, predicted that its first quarter revenue and profit would exceed Wall Street expectations. The company said that as technology companies expand artificial intelligence functions in data centers, the growing demand for testing technology has driven this growth.
According to the London Stock Exchange Group (LSEG), Teradyne told investors that the revenue in the first quarter is expected to be between US$1.15 billion and US$1.25 billion, which is about US$934.5 million higher than the average expectation of analysts. The adjusted earnings per share is expected to be between US$1.89 and US$2.25, which is also higher than the US$1.26 generally expected by the market.
With the increasing complexity of computing and storage chips with artificial intelligence as the core, enterprises have increased capital investment in test equipment, and the demand for Teradyne’s automated test tools has also increased.
In the fourth quarter, Teradyne’s revenue was about US $1.08 billion, far exceeding analysts’ previous forecast of about US $973million. The application demand of artificial intelligence in the fields of computing, network and storage drives the growth of its semiconductor testing business.
After the release of the performance guidelines, the share price of Teradyne rose sharply, reflecting investors’ confidence in its position in the expanding artificial intelligence hardware ecosystem.
Also Read: Telia and Lyse combine mobile networks in Norway to cut costs
Also Read: OpenAI’s dissatisfaction with Nvidia chips may speed alternative search
