Teradyne, Inc.

NASDAQ Global Select
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Very Bullish +78

Teradyne and Qualcomm have been highlighted as Zacks Bull and Bear of the Day

📈 Zacks Investment Research named Teradyne (TER) the Bull of the Day and Qualcomm (QCOM) the Bear of the Day on May 4, 2026.

🤖 Teradyne successfully pivoted from a cyclical chip-tester to a cornerstone of the global AI infrastructure buildout.

💰 Teradyne's Q1 2026 revenue reached $1.282 billion, an 87% year-over-year increase that significantly beat guidance.

📉 Qualcomm's Q2 FY 2026 earnings declined 7% year over year to $2.65 per share, missing analyst consensus slightly.

🧠 AI-related sales now account for approximately 70% of Teradyne's total revenue, up from 60% just last quarter.

🤖 Teradyne is becoming the gatekeeper for AI GPUs, high-bandwidth memory (HBM), and complex ASICs due to rising test intensity.

🚀 The company's Robotics segment grew to $91 million in Q1 as a high-margin "second act" for 2027–2030.

📊 Analyst consensus full-year EPS estimates for Teradyne have jumped 13% from $6.22 to $7.05 following the earnings beat.

🏷️ JPMorgan upgraded Teradyne to Overweight and raised its price target to $400, citing a rare valuation dislocation.

📉 Teradyne shares sold off 19% post-earnings but analysts view the pullback as an opportunity at a forward PEG ratio near 1.0.

📉 Qualcomm's non-GAAP revenues fell 2% year over year to $10.60 billion, missing the consensus mark of $10.64 billion.

Bullish Signals
  • Teradyne shattered its high-end guidance for Q1 2026, with revenue growing 87% year-over-year to $1.282 billion.
  • The company demonstrated elite operating efficiency with record gross margins of 60.9% and a massive expansion in operating margin to 37.5%, up from 20.5% a year ago.
  • Analysts have sharply upgraded estimates, projecting full-year earnings over $7.05 and a 2026 top-line approaching $4.5 billion, representing 39.5% growth.
  • Teradyne's pivot to AI infrastructure is accelerating, with AI-related sales now accounting for approximately 70% of total revenue, up from 60% last quarter.
  • The company is benefiting from a surge in HBM demand for AI servers, creating a massive tailwind largely independent of sluggish smartphone markets.
  • The Robotics segment showed strong recovery growth to $91 million in Q1, positioning it for high-margin expansion through the 2030 horizon.
  • Despite a recent stock dip following earnings, the forward PEG ratio is near 1.0 and JPMorgan analyst Samik Chatterjee upgraded the stock to Overweight with a price target of $400.
  • Analysts are hiking full-year EPS consensus from $6.22 to $7.05, reflecting renewed confidence in the fundamental bullish case for the AI supercycle.
Risk Factors
  • Teradyne shares sold off 19% the day after earnings and still trade under $350, suggesting the market may be pricing in concerns about revenue 'lumpiness' rather than full appreciation of long-term growth.
  • Management's Q2 2026 guidance explicitly projects a moderation in revenues for the second half of the year, reflecting timing delays in customer programs and purchases rather than a change in the overall trajectory.
  • Analysts embedded expectations for sequential revenue rises into current valuations, meaning there may be limited room for upside before buy-side expectations are fully realized despite the strong fundamentals.
  • Qualcomm faces significant headwinds with declining handset numbers and falling sales, evidenced by non-GAAP revenues of $10.60 billion which missed the consensus estimate of $10.64 billion by 0.2%.
  • Qualcomm's non-GAAP earnings declined 7% year over year to $2.65 per share, indicating a broader decline in overall profit despite topping the specific quarterly consensus estimate.
Full Analysis
Teradyne (TER) has been identified as Zacks Investment Research's "Bull of the Day" following exceptional Q1 2026 financial results, while Qualcomm (QCOM) is named the "Bear of the Day" due to declining handset sales. The analysis highlights that Teradyne successfully pivoted from a cyclical chip-tester into a critical component of global AI infrastructure, with Q1 2026 revenue reaching $1.282 billion, an 87% year-over-year increase that significantly beat the company's own high-end guidance of $1.25 billion. Earnings were equally strong, with non-GAAP EPS of $2.56 compared to a consensus estimate of $2.08, representing a staggering 241% year-over-year growth. This performance was driven by AI-related sales accounting for approximately 70% of total revenue and semiconductor test revenue exceeding $1 billion for the first time. Operating leverage improved dramatically with record gross margins of 60.9% and operating margins expanding to 37.5% from 20.5% a year prior, validating management's strategic shift away from consumer electronics toward high-end AI chips and memory. Investor sentiment has been shaken by an immediate market reaction where shares dropped 19% following the report, though analysts are rapidly adjusting upwards. Consequently, full-year EPS estimates have jumped 13% to $7.05, with projections for 2026 revenue approaching $4.5 billion and a forward PEG ratio near 1.0 despite 50%+ expected earnings growth, suggesting the stock may be undervalued. Key drivers include Teradyne's "Wafer-to-Data-Center Strategy" as the primary supplier for testing AI GPUs and high-bandwidth memory, independent of the broader smartphone market, alongside a recovering robotics segment that grew to $91 million in Q1. Analyst Samik Chatterjee from JPMorgan upgraded the stock to Overweight with a price target of $400, arguing that recent volatility represents a buying opportunity given the structural shift in demand and robust Q2 2026 guidance of $1.15 billion to $1.25 billion in revenue. In contrast, Qualcomm (QCOM) is flagged as a bearish pick after reporting Q2 FY 2026 non-GAAP earnings of $2.65 per share, which met expectations but still declined 7% year over year due to falling handset numbers and overall sales. Revenue for the quarter totaled $10.60 billion, a 2% decline from the prior year and missing the consensus mark by a small margin. This trajectory is attributed to the ongoing downturn in the consumer smartphone market, which serves as Qualcomm's primary revenue source. The Zacks analysis contrasts these two companies, suggesting that Teradyne offers a high-conviction play on the hardware complexity required for the AI data center buildout, whereas Qualcomm is weighed down by secular declines in its core mobile business.