Teradyne Stock Surges 19% on Strong Earnings and AI Growth Prospects

Teradyne shares skyrocketed 18.9% Wednesday after the electronics testing firm reported better-than-expected Q2 results. While revenue declined 11% year-over-year to $651 million, both EPS ($0.57 vs $0.54 expected) and sales met or exceeded analyst estimates.

The company's bullish Q3 revenue guidance of $710-$770 million surpassed Wall Street forecasts, though EPS projections of $0.69-$0.87 fell short of the $0.89 consensus. CEO Greg Smith highlighted emerging opportunities in AI compute testing, stating confidence in "revenue inflecting in the second half of the year."

Cantor Fitzgerald maintained its Overweight rating, citing Teradyne's positioning in AI-driven semiconductor testing markets. The analyst endorsement and AI growth narrative overpowered concerns about the earnings guidance miss, driving the day's exceptional performance.