Teradyne TER is benefiting from the accelerating growth of data centers, driven by the increasing demand for AI-driven applications and high-performance computing. In the fourth quarter of 2025, AI-related applications contributed to more than 60% of its revenue, with expectations to drive up to 70% of revenues in the first quarter of 2026.
The company’s expanding portfolio has been noteworthy. In March 2026, Teradyne announced the launch of Omnyx, an advanced manufacturing test platform designed for printed circuit board assemblies and sub-assemblies in AI and data center applications. The platform integrates structural, parametric, high-speed interconnect and functional testing into a single system, enabling earlier detection of signal integrity and operational defects. It helps manufacturers improve yield, reduce defect escapes and ensure higher-quality final assemblies for next-generation data center infrastructure.
Teradyne’s joint venture with MultiLane to form MultiLane Test Products further underscores its commitment to serving the AI data center market. This partnership will enable Teradyne to expand its capabilities in high-speed I/O and data center interconnect test solutions, further solidifying its position in the market.
Teradyne anticipates robust growth in the automated test equipment total addressable market, which is expected to expand from $9 billion in 2025 to $12 billion to $14 billion in the mid-term. This growth is largely attributed to the increasing complexity of AI-driven applications, the transition to edge AI and the proliferation of AI data centers.