Teradyne (NASDAQ:) shares rocketed 15% during early market action on Wednesday as artificial intelligence demand is expected to drive a strong performance in the second half of 2025 while tariff noise fades. Teradyne reported its second quarter 2025 on Tuesday evening. \"Executive commentary highlighted 2Q's performance was driven by Semiconductor Test with System-on-a-chip (or SOC) for AI applications as the strongest growth driver,\" said KeyBanc analysts, led by Steve Barger, in an investor note. \"TER indicated that 2H visibility has improved and demand in compute, networking, and memory is strengthening.\" KeyBanc retained its Sector Weight rating on the stock. Meanwhile, Cantor maintained its Overweight rating and $105 price target. \"If the team can highlight the robust opportunity ahead with TER's leverage to both the cyclical recovery and secular megatrends (including a likely focused discussion on rising compute exposure at Teradyne), the stock should continue to work higher,\" said Cantor analysts, led by C.J. Muse, in a note. \"Admittedly, this has been an area where mgmt. has struggled in the past, but we believe the setup this Q may be more conducive to positive investor takeaways.\" Stifel noted that compute strength related to AI proved to be a bright spot for the earnings report. \"Initial commentary in the earnings release, however, signals relative strength in AI computing and improved visibility into 2H,\" said Stifel analysts, led by Brian Chin, in a note. \"Given that Teradyne's 2Q results were more severely impacted by trade/tariff uncertainty than most, there is some reassurance that these trends appear to be normalizing.\" Stifel has a Hold rating on the stock. Teradyne competitors were mixed during Wednesday morning trading. Advantest () was down 6% during Wednesday trading while Cohu () perked up 1.5%.

Teradyne takes off as tariff concerns fade; AI provides springboard for 2H25: analysts

Teradyne's shares surged 15% on Wednesday as AI demand is expected to drive strong performance in the second half of 2025, following the company's Q2 2025 results. Analysts highlighted growth in Semiconductor Test for AI applications and improved visibility into 2H25, while competitors showed mixed performance.