35 Chip Stocks Powering AI Boom

20. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders: 41

Teradyne, Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products globally. In the past few months, investments in advanced semiconductor manufacturing and fabrication have more than tripled, topping $100 billion as manufacturers race to meet the increase in demand for complex chips that are used to run demanding applications for AI products. This has subsequently led to an increase in demand for automated test equipment (ATE), a specialty of Teradyne. ATEs are critical since they bring up AI devices quickly, optimize their yield, and improve silicon performance.

In the second quarter earnings call, Greg Smith, the CEO of Teradyne, Inc. (NASDAQ:TER), explained how Cloud AI products were driving strong demand for ATEs across chip and memory markets. In the first half of 2024, the company was able to exceed the revenue it had made from chipmakers in all of 2023.