TacticScaleWhat Teradyne Does & How It Makes Money (TER)
Updated October 2026 · reflects Teradyne's latest reported financials
Maker of semiconductor test systems and industrial robots. Teradyne sells automated test systems and related services to chipmakers, fabless chip designers, foundries and outsourced assembly-and-test firms.
How Teradyne makes money
Teradyne sells automated test systems and related services to chipmakers, fabless chip designers, foundries and outsourced assembly-and-test firms. It also earns revenue by selling robots and test instruments to manufacturing, logistics, industrial and defense/aerospace customers.
What Teradyne does
Teradyne, founded in 1960 and headquartered in North Reading, Massachusetts, is best known for automated test equipment that checks semiconductors at the wafer, package and system level. Its platforms include FLEX, J750 for high-volume devices such as microcontrollers, Magnum for flash and DRAM memory, and ETS for analog/mixed-signal chips. Customers include integrated device manufacturers, fabless companies, foundries and outsourced assembly-and-test providers, serving end markets from smartphones and cars to cloud computing. It is working with Tokyo Electron on a test cell solution for screening devices used in AI and data center applications. Its Robotics segment sells collaborative robot arms and autonomous mobile robots to manufacturing, logistics and industrial customers. Teradyne also sells product test instruments for defense/aerospace, circuit-board, wireless and silicon photonics testing. It operates in the United States, Asia Pacific, Europe, the Middle East and Africa.
Products & services
- FLEX test platform
- J750 test system
- Magnum memory test platform
- ETS analog/mixed-signal test platform
- Collaborative robotic arms
- Autonomous mobile robots
What is Teradyne worth?
On an owner-earnings DCF, Teradyne's most-likely value is about $118 versus a recent price near $403 (71% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$47) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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