We recently published a list of 10 AI Stocks Investors are Watching Closely. In this article, we are going to take a look at where Teradyne, Inc. (NASDAQ:TER) stands against other AI stocks investors are watching closely.
President Donald Trump has only recently announced the Stargate initiative, claiming it to be “the largest AI infrastructure project by far in history”. According to him, the project would help keep “the future of technology” in the US. However, a Bloomberg report reveals how Elon Musk is openly questioning whether the companies that have joined Trump’s announcement, promising hundreds of billions of dollars in artificial intelligence, could follow through on them.
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Could this be a sign of an early difference of opinion within the White House? Only hours after the announcement, Musk took to his platform, X, to reveal that the companies don’t have the funds.
“They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority”.
Contrary to Musk’s claims, Sam Altman, CEO of OpenAI, had his own statements to make on X. Altman posted that Musk’s claims are wrong and that he has been upset because this initiative could compete with his Elon Musk’s own AI endeavors.
“Wrong, as you surely know. Want to come visit the first site already under way? This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role I hope you’ll mostly put US first”.
— Sam Altman
Musk is leading Trump’s government efficiency efforts and will also be advising him on spending. The billionaire, ever since leaving OpenAI’s board in 2018, has been engaged in a feud with Altman. Sources close to Stargate also reveal that they are not sure how Musk has arrived at the figure. According to them, the company is well-positioned to deploy $100 billion.
“I think this will be the most important project of this era. We wouldn’t be able to do this without you, Mr. President”.
-Sam Altman.
In light of this, Bloomberg revealed that Trump has, on several occasions, promoted private-sector investment promises that never went on to materialize. One of these failed promises has been the failed Foxconn factory project which Trump deemed as the “Eighth Wonder of the World”. No wonder the Stargate announcement has sparked skepticism regarding the project’s completion.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of engineers discussing around a fully-equipped flex test platform system.
Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 43
Teradyne, Inc. (NASDAQ:TER) creates automated test systems and robotic solutions. On January 22, the company’s division Teradyne Robotics, announced that it has entered into a strategic partnership with Analog Devices, Inc. (ADI), a global semiconductor leader. The partnership aims to accelerate the development and use of advanced robotics. The collaboration will allow the companies to develop and deploy robots, AI, and software to support ADI’s goal of improving automation, thereby improving safety, efficiency, and overall operations. In particular, Teradyne’s Universal Robots (UR) and Mobile Industrial Robots (MiR) will be integrated with ADI’s system-level electronics expertise for bringing state-of-the-art robotics and automation solutions to the market.
“By combining Teradyne Robotics’ market-leading UR Cobots and MiR AMRs with ADI’s extensive system-level electronics expertise, we are poised to revolutionize the robotics and automation landscape. This partnership will enable us to deliver state-of-the-art solutions that drive innovation and efficiency throughout the semiconductor lifecycle. In doing so, we will also be applying robotics applications and technologies, which will further advance robotics in additional sectors ripe for automation”.
-Ujjwal Kumar, Group President, Teradyne Robotics.
Overall, TER ranks 7th on our list of AI stocks investors are watching closely. While we acknowledge the potential of TER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
