Teradyne, Inc.

(NASDAQ Global Select)
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Bullish +65

Cathie Wood Dumps the Last of Teradyne From Her Flagship Fund

Company update Earnings report AI-generated analysis

📉 ARKK ETF sold its last Teradyne shares worth ~$101k on Nov 11, following a prior sale of $1.4m earlier in the week.

🤖 Teradyne's AI-driven revenue now accounts for over 60% of total sales as demand for chip testing equipment surges.

💰 Q3 revenue exceeded $1.3 billion (up 70%) and non-GAAP EPS of $2.29 beat market expectations.

📈 Stock jumped 8.30% to $265.78 after Jefferies initiated Buy coverage with a $284 price target.

🛡️ ARK Autonomous Technology ETF (ARKQ) retains a large stake of ~$61.6m in Teradyne despite ARKK exit.

📅 Management guided Q4 revenue between $1,250M and $1,350M with expectations for 2027 growth.

📉 Stock remains down ~30% from its June record high of $483.84 despite recent rally.

⚙️ Teradyne's robotics unit achieved profitability in the third quarter, diversifying revenue streams.

🔮 Market attention focuses on whether ARKQ will reduce its position and if stock holds above $212.74.

Bullish Signals
  • Teradyne reported Q3 revenue of over $1.3 billion, a significant 70% increase year-over-year driven by AI demand.
  • Non-GAAP EPS of $2.29 beat analyst expectations, demonstrating strong operational execution.
  • AI-driven revenue now represents more than 60% of total sales, indicating a successful strategic pivot.
  • Jefferies initiated coverage with a Buy rating and set a $284 price target, validating the stock's upside potential.
  • The company's robotics unit reached profitability in Q3, adding a new growth pillar to its business model.
  • Management guided Q4 revenue between $1,250M and $1,350M, signaling confidence in near-term demand.
Risk Factors
  • The stock remains down approximately 30% from its June record high of $483.84, indicating lingering investor skepticism.
  • Teradyne's major new computing programs depend on a limited number of hyperscaler customers with ramps expected in 2027.
Full Analysis
Cathie Wood's ARK Innovation ETF (ARKK) sold its entire remaining position in Teradyne (TER), with the final trade clearing out approximately $101,841 worth of shares on November 11, 2026. This exit follows a significant selling spree earlier in the week where the fund offloaded roughly $1.4 million of the stock. Despite the complete divestment from ARKK, Teradyne remains a major holding within the ARK Autonomous Technology and Robotics ETF (ARKQ), which maintains a substantial stake valued at approximately $61.6 million. Teradyne reported robust third-quarter financial performance with revenue exceeding $1.3 billion, representing a 70% year-over-year increase. Non-GAAP earnings per share of $2.29 also beat analyst expectations. The company highlighted that AI-driven revenue now constitutes more than 60% of its total sales, reflecting a strong shift in demand for automated test equipment required for advanced semiconductor production and high-bandwidth memory. Following the news of ARKK's exit, Teradyne shares rallied 8.30% to $265.78 on November 11, shortly after Jefferies initiated coverage with a Buy rating and a $284 price target. Management provided guidance for fourth-quarter revenue between $1,250 million and $1,350 million and expects healthy growth in 2027. However, the stock remains down approximately 30% from its June record high, trading below the November 5 low of $212.74 as investors weigh cyclical equipment spending against long-term AI demand.