Can AI Help Teradyne Return to Strong Revenue Growth?

We’ve been in housecleaning mode here at Nanalyze, tightening up the Disruptive Tech Portfolio and refining our methodology for what tech stocks our team of underpaid MBAs analyze. For instance, during our recent Quarterly Portfolio Review, we described how we will avoid growth-value stock hybrids in favor of pure growth stocks. This already aligns with our rule for dumping companies experiencing protracted periods of stalled revenue growth. Now we want to ease the workload of our overworked MBAs by focusing more on tech stocks that appear supercharged for growth at least in the midterm (defined as double-digit growth over the next five years).

This brings us to Teradyne (TER), a company that develops automated testing equipment (ATE) for semiconductors across various applications and technologies. This includes everything from automotive and industrial products to smartphones and laptops. It’s quality control for chipsets, memory devices, wireless components, and all the rest. While it sounds almost as exciting as watching paint dry, the technology is integral to the $588 billion semiconductor industry. Its high-profile customer list includes names like Samsung, Qualcomm, Intel, IBM, and Texas Instruments (yes, they are still a thing).

But that’s not why we originally held shares in Teradyne stock until early last year. We had been attracted to the venerable U.S. company, founded by a couple of former MIT classmates in 1