Teradyne TER is benefiting from growing demand for AI infrastructure, driving robust growth across its semiconductor test and robotics divisions. In the first quarter of 2026, the Semiconductor Test (SemiTest) segment alone generated $1.1 billion, breaking the $1 billion threshold for the first time and more than doubling year over year. This segment saw a 26% sequential increase and more than a 100% year-over-year increase.
Growth is largely driven by accelerating demand for AI and data center technologies, with AI-related demand accounting for nearly 70% of Teradyne’s revenue in the first quarter of 2026, up from about 60% in the previous quarter.
Within the SemiTest, the SoC (System on Chip) product line contributed $882 million, memory test solutions added $203 million and the IST group delivered $27 million. Compute, driven by AI, now represents roughly 75% of SoC product revenue, highlighting a strategic shift from mobile-centric to AI-dominant testing.
Teradyne’s investments in new products, such as the Photon 100 for silicon photonics and the Omnyx platform for server board testing, position it to capture emerging opportunities in high-speed networking and data center infrastructure. The company has also secured its first multisystem production test orders for merchant GPUs, signaling further penetration into the AI compute market. Strong demand for high-bandwidth memory and DRAM test solutions, as well as increasing flash test demand, are contributing to the positive outlook.
Teradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth. For the second quarter of 2026, Teradyne expects revenues in the range of $1.15-$1.25 billion.