Teradyne Could Win BOTH the Chip and Robotics Boom

**Vincent** (0:00)
As we're building more data centers, more chips, and everything that is inside the rack will grow a lot, right? And that's kind of the short term thesis that Teradyne is growing with that increase in market.

**LG Dusev** (0:12)
What's up, everybody? It's LG Dusev here, and welcome to Milk Road AI, the daily AI show that is gonna find the next Micron any day now. We just have to go through every single stock on the market to find it. Today's July 10th, 2026, recording on July 9th. Every Friday, we sit down with Vincent, one of our top AI analysts, to do a presentation deep dive on a key AI stock. It's very visual, so if you're on audio, we're gonna do our best to explain what's going on. Today, we're focusing on Teradyne, which is the second largest designer of testing equipment for semiconductors and a lot of other things that go into the rack. They are set to grow along with the rest of the trade. As semiconductor testing takes up 79 percent of their revenue, plus they're well positioned to be part of the robotics trade, as that already makes up 10 percent of their business. Plus, Vincent is going to reveal whether he has a position or not in the company. If you want to keep track of that, Milk Road PRO is 33 percent off this week only. Inside PRO, you can see exactly what he and our other analysts are buying, selling and researching, plus get all that info in real-time via text or email. Check it out at the link below. Today's episode is brought to you by BitGet, stocks 2 with real liquidity, real dividends and securitize the rated rails for tokenization. Vincent, what's up, man? I'm excited to learn about Teradyne today, and I'll be honest with you, off the bat, I actually don't even know what this company is, so please tell me before we get into all the intelligence, all the data, what is Teradyne? What do they do?

**Vincent** (1:34)
Yeah, nice to be back, LG. Teradyne is a semiconductor testing company. They're actually testing if the stuff works before it gets deployed.
And they're winning because AI hardware gets more complex and more stuff, more GPUs, more memory, more optics, more boards, need to be tested moving forward. And that's why I like the name and that's the thesis on the name.

**LG Dusev** (2:03)
Okay. So then, wait, how many, how many, maybe you maybe have this later in the presentation, because for people listening and people watching, I don't look at these before Vincent starts doing them. So I don't know what we're going to talk about today. How many semiconductors do they have to test per day or per year? Like, are we talking like millions and millions and millions?

**Vincent** (2:20)
So if you look at the market, there are only two companies, and Teradyne owns about 35 percent of the market. Now you can break it down into all the GPUs, all the CPUs, all the power semiconductors, all the memory chips, everything needs to be tested before it works.
It's a massive number in the millions.

**LG Dusev** (2:43)
Yeah. Okay. Great. Well, let's get into it, man. Do you tell me, obviously, it's good to get the context on what this company does. I'll just go through some of the data before, and some of the stats where people know the ticker is TER. The market cap is just under 60 billion.
You know what? It is up a lot in the last year, Vincent, like a lot of other companies, but I want to know, obviously, you're going to tell us today why you find it so interesting.

**Vincent** (3:06)
Yeah. Let's jump into it.
Here is the top-down view on the three really bullish signals on the company, and I want to get that on the way to hype up the people, to then jump into the more details. What we need to understand is, AI chips are getting much harder to test. We have much more custom silicon. All the hyperscalers, for instance, are announcing their own chips. I think Meta just came out with another ASIC.
ASIC is another word for we're using our own chips and not the NVIDIA chips. For all the new chips that are coming out, essentially, the more complex those chips are getting, the more a company like Teradyne benefits because the TEM of what needs to be tested gets bigger. That's the first core driver. The second one is-

**LG Dusev** (4:00)
Are those chips harder to test as they become more developed? Do they require more testing?

**Vincent** (4:08)
Exactly. That's the second point on this slide here. As we're moving from single chips into the Rex, the 800 volts DC architecture of NVIDIA, where everything is really interconnected to each other. You don't only have the chips, but you have the memory on top of it. We're basically moving into the 3D packaging, the 3D kind of architecture and there. A, it's more complex to test, and B, you need to test many more things.