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Teradyne's (TER) Robotics Footprint Gets Boost With NVIDIA Tie-Up

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Teradyne (TER - Free Report) is strengthening its footprint in the field of robotics on the back of its recent partnership with NVIDIA (NVDA - Free Report) to integrate advanced AI capabilities into its automation solutions.

Teaming up with NVIDIA, Teradyne's robotics division, which comprises Universal Robots (UR) and Mobile Industrial Robots (MiR), is set to transform automation applications with AI-powered technologies.

Teradyne’s UR division seamlessly integrated NVIDIA’s accelerated computing into its collaborative robot (cobot) platform, resulting in path planning speeds that are 50-80 times faster than current solutions.

The integration utilizes the NVIDIA Jetson AGX Orin module and cuMotion path planner from the NVIDIA Isaac Manipulator platform, coupled with UR's PolyScope X software. MiR introduced the MiR1200 Pallet Jack, equipped with advanced AI pallet detection powered by NVIDIA's Jetson AGX Orin module, enabling precise pallet handling even in dynamic and complex environments.

Teradyne, Inc. Price and Consensus

 

Teradyne, Inc. Price and Consensus

Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote

 

Teradyne’s Prospects Driven by Strong Portfolio

Teradyne is bolstering its position in the robotics industry by capitalizing on its robust and diversified portfolio. This initiative aligns seamlessly with Teradyne Robotics' commitment to advancing automation capabilities through collaborative partnerships and technological integration.

In the fourth quarter, the Robotics segment, particularly UR, experienced significant growth, with revenues up 17% year on year and 50% sequentially. The surge was driven by the successful ramp-up in shipments of Teradyne's UR20 cobot and the introduction of the new UR30 model, both of which significantly contributed to the segment's strong performance.

Teradyne's expansion of its Robotics customer base by integrating more than 50 new OEM partners and significantly augmenting the number of large accounts managed directly from nearly 100 to more than 250 further solidified its position in the market.

Further enhancing semiconductor test interfaces and driving accelerated growth, TER forged a partnership with Technoprobe in November, last year. This partnership saw the company investing $516 million in Technoprobe, while Technoprobe acquiring Teradyne's DIS business for $85 million.

However, the overall weak demand environment and weakness in the hard disk drive market has been a headwind.

For the first quarter of 2024, Teradyne expects revenues between $540 million and $590 million. The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $571.71 million, indicating decline of 7.42% year-over-year.

Non-GAAP earnings are expected between 22 cents and 38 cents per share. The Zacks Consensus Estimate for earnings is pegged at 37 cents per share, decreased by a couple of pennies over the past 30 days.

Zacks Rank & Stocks to Consider

Teradyne currently has a Zacks Rank #5 (Strong Sell).

TER’s shares have declined 4.6% in the year-to-date period compared with the Zacks Computer & Technology sector’s growth of 9.9%.

Some better-ranked stocks in the broader Zacks Computer & Technology sector are BILL Holdings (BILL - Free Report) and Cadence Design Systems (CDNS - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL Holdings’ shares have declined 18.5% in the year-to-date period. BILL’s long-term earnings growth rate is currently projected at 23.64%.

Cadence Design Systems’ shares have gained 14.5% in the year-to-date period. CDNS’ long-term earnings growth rate is currently projected at 17.07%.

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