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Teradyne's SemiTest segment tops $1.1B in Q1 2026 as AI demand neared 70% of revenue, backed by new test platforms and upbeat Q2 sales guidance.

Steven Dickens sits with Nicole Petallides to dive into some underappreciated players in the AI investment theme including IBM (IBM), Teradata (TER) and even Amazon (AMZN). He talks about the inertia AI capex spending from the Mag 7 names has on secondary derivatives, calling them "hidden gems.

Teradyne is rated a buy, driven by record Q1 2026 results and dominant positioning in AI-related semiconductor testing. Q1 revenue surged 87% YoY to $1.28B, with adjusted EPS at $2.56 and 70% of revenue from AI demand. TER commands a high-barrier duopoly in automated test equipment, leading in AI compute chips and benefiting from robust industry tailwinds.

Quantum ETFs are surging as breakthroughs, funding and AI demand fuel growth, offering diversified exposure to a high-risk, high-reward theme.

NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NASDAQ:TER) today announced a quarterly cash dividend of $0.13 per share, payable on June 12, 2026, to shareholders of record as of the close of business on May 21, 2026. About Teradyne Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. I.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

TER benefits from booming AI demand, driving strong growth across segments and reinforcing momentum as investors eye continued upside potential.