Cathie Wood’s Top 12 AI Stock Picks in 2025

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5. Teradyne Inc. (NASDAQ:TER)

ARK Investment Management’s Stake Value: $242.15 Million

Number of Hedge Funds Holding Stakes: 61

Teradyne Inc. (NASDAQ:TER) designs and manufactures automated test equipment and robotics, specializing in semiconductor testing and industrial automation. Its ATE solutions play a key role in ensuring the quality and performance of complex AI chips through rigorous testing.

On March 10, 2025, Teradyne Inc. (NASDAQ:TER) announced a definitive agreement to acquire Quantifi Photonics, a photonic IC testing company. This deal will enable the corporation to deliver scalable photonic integrated circuit test solutions. According to CEO Greg Smith, the extraordinary growth and complexity driven by Cloud AI requires optical interconnect solutions to support bandwidth and reduce power consumption.

The company is restructuring leadership, with Shannon Poulin replacing Rick Burns as President of the Semiconductor Test Division in Q2 2025. It also partnered with Infineon Technologies in January to enhance power semiconductor testing, acquiring part of Infineon’s automated test equipment team in Germany. Wood increased her stake in the company by 26% during Q4 2024, bringing ARK Investment Management’s position to over $242 million. Other than ARK Investment Management, 61 hedge funds hold stakes in Teradyne Inc. (NASDAQ:TER).

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