January 23, 2025

Can Teradyne's Partnership With Analog Devices Push the Stock Higher?

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Teradyne TER recently announced a partnership between its robotics division, Teradyne Robotics and Analog Devices ADI, a leading global semiconductor company, to advance the development and adoption of advanced robotics solutions.

This collaboration aims to drive innovation in automation by integrating ADI’s advanced technologies with Teradyne Robotics offerings, including Universal Robots and Mobile Industrial Robots (MiR).

Together, the companies plan to enhance safety, efficiency, and productivity in semiconductor fabrication and backend operations while addressing critical industry challenges such as workforce shortages, ergonomic concerns, and real estate constraints.

The partnership will also leverage edge-based AI and machine learning to elevate Teradyne Robotics portfolio, further solidifying its leadership in the automation space.

Teradyne, Inc. Price and Consensus

Can Teradyne's Partnership With Analog Devices Push the Stock Higher?

Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote

Teradyne Benefits From Robotics Growth and Key Partnership

Teradyne is strengthening its robotics position by leveraging its diverse portfolio and focusing on automation through partnerships and technological integration.

In the third quarter of 2024, the company reported 8% growth in Robotics, outperforming its peers in the industrial automation market, which saw declines averaging more than 10%. This growth trajectory can be attributed to Teradyne’s continuous focus on adapting to changing market demands, particularly in the robotics sector.

Further expanding its portfolio in the robotics sector in September 2024, Teradyne Robotics collaborated with Siemens to develop an advanced robotics showcase at MxD (Manufacturing x Digital) in Chicago, a leading hub for digital manufacturing and cybersecurity in the United States. The collaboration will highlight advanced robotics and automation solutions, featuring products from Teradyne Robotics subsidiaries, Universal Robots and MiR.

Despite a tough industrial macro environment, Teradyne outperformed its industrial automation peers, with growth in key areas like UR and MiR. This outperformance was driven by new product launches, such as Universal Robots heavy-payload robots and MiR1200 Pallet Jack, powered by AI and NVIDIA NVDA technology. These product developments helped maintain growth even in difficult conditions.

Teradyne also collaborated with NVIDIA to integrate advanced AI capabilities into its automation solutions. TER’s collaboration with NVIDIA brings new AI capabilities to automation, enhancing UR’s cobots with faster path planning and introducing MiR’s AI-powered Pallet Jack for precise autonomous pallet handling.

Teradyne Outperforms Industry and Peers in Robotics

TER shares have returned 21.8% over the trailing 12-month period, and prospects in 2025 are strongly driven by a solid position in Robotics and a rich partner base.

Teradyne shares have outperformed the Zacks Electronics - Miscellaneous Products industry, which declined 27.2% over the trailing 12-month period.

TER has also outperformed its peer Omron OMRNY in autonomous mobile robots, solidifying its leadership across the robotics industry. OMRNY shares have plunged 30% over the trailing 12-month period.

TER’s Earnings Estimates Show Upward Movement

The Zacks Consensus Estimate for TER’s 2025 revenues is pegged at $3.33 billion, indicating year-over-year growth of 18.72%.

The consensus mark for 2025 earnings is currently pegged at $4.10 per share, which has increased by a penny over the past 30 days and indicates a year-over-year increase of 29.83%.

TER’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 23.20%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar .

Here is why TER is a Strong Buy Stock

Teradyne’s robust and diversified portfolio is continuously contributing to its growth prospects and driving top-line growth.

Additionally, growth in the Robotics business, driven by AI-powered automation solutions and new product innovations, will further support Teradyne’s strong market position.

TER stock currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here .

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