10 Best Semiconductor Equipment Stocks to Buy Now

5. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders In Q3 2024: 43

Teradyne, Inc. (NASDAQ:TER) is an American semiconductor test equipment provider. As a result, the shares are up by a modest 17.6% year-to-date as the firm has navigated through an overall sluggish semiconductor industry. Investors were optimistic about Teradyne, Inc. (NASDAQ:TER) heading into the firm’s second-quarter earnings report in July. However, the report saw the firm guide midpoint revenue at $710 million which fell below analyst estimates and the shares fell by 13%. Teradyne, Inc. (NASDAQ:TER)’s midpoint Q4 revenue guidance of $735 million provided at the Q3 earnings also fell short of analysts’ $736 million, sending the stock down by another 11%. However, the firm works with some of the biggest chip companies in the world, such as Qualcomm. This provides it with a robust industry presence which can work in its favor once the consumer electronics and smartphone markets recover.

TimesSquare Capital Management mentioned Teradyne, Inc. (NASDAQ:TER) in its Q3 2024 investor letter. Here is what the fund said:

“Teradyne, Inc. (NASDAQ:TER) develops and manufactures automated test systems and robotics products worldwide. Solid second quarter results were driven by higher spending levels in computer and memory. Mobile, auto, and industrial spending remained soft. Management’s forward guidance was weaker-than-expected and that caused their stock to sell off by -10%.”