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If You Invested $1000 in Teradyne a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Teradyne (TER - Free Report) ten years ago? It may not have been easy to hold on to TER for all that time, but if you did, how much would your investment be worth today?
Teradyne's Business In-Depth
With that in mind, let's take a look at Teradyne's main business drivers.
Headquartered in North Reading, MA, Teradyne designs, develops, manufactures and sells automated test equipment and robotics products. Its automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries.
Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) that are used by global manufacturing, logistics and industrial customers.
Teradyne's semiconductor test products are used both for wafer level and device package testing of semiconductor devices. Its product portfolio comprises the FLEX Test platform, J750 test system, Magnum test platform and ETS platform, each tailored for specific semiconductor testing needs.
The company’s system Test segment is comprised of three business units: Storage Test, Defense/Aerospace and Production Board Test. Wireless Test business operates under the LitePoint brand name and provides test solutions utilized in the development and manufacturing of wireless devices and modules.
The Robotics segment comprises two business units: Universal Robots and Mobile Industrial Robots (MiR).
Universal Robots offers a variety of collaborative robot models, including the UR3, UR5, UR10, UR16 and UR20, each with different weight carrying capacity and arm reach. MiR offers four collaborative autonomous mobile robot models, MiR100, MiR250, MiR600 and MiR1350, each with a different payload carrying capacity.
Teradyne reports revenues primarily under four segments: Semiconductor Test, System Test, Robotics, and Wireless Test. In 2023, the company reported revenues of $2.68 billion.
Teradyne competes globally with key rivals like Advantest, Cohu, Keysight, Test Research, SPEA, Rohde & Schwarz, Anritsu, KUKA, ABB, FANUC, Yaskawa, Techman, Doosan, AUBO, Omron, Fetch, OTTO Motors, Vecna, Seegrid and Balyo.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Teradyne ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2014 would be worth $7,785.28, or a 678.53% gain, as of July 23, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 180.53% and gold's return of 76.40% over the same time frame.
Looking ahead, analysts are expecting more upside for TER.
Teradyne is benefiting from its robust and diversified portfolio. Improving memory and compute outlook driven by positive impact of AI-driven applications on test demand is expected to drive top-line growth despite weakness in mobile, legacy auto and industrial end-markets. These markets are now expected to recover in 2025. Compute total addressable market (TAM) is now expected to be $1.5 billion, while SOC TAM remains unchanged between $3.6 billion and $4.2 billion. Memory TAM also increases to $1.3 billion driven by strong demand for HBM. However, Teradyne lowers TAM for auto, mobile and industrial end-markets. Robotics are expected to grow sequentially in the second quarter of 2024. Teradyne expects to deliver 10% to 20% growth in 2024. However, excess inventory is likely to hurt semiconductor growth in the near term.
Shares have gained 6.14% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Teradyne a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Teradyne (TER - Free Report) ten years ago? It may not have been easy to hold on to TER for all that time, but if you did, how much would your investment be worth today?
Teradyne's Business In-Depth
With that in mind, let's take a look at Teradyne's main business drivers.
Headquartered in North Reading, MA, Teradyne designs, develops, manufactures and sells automated test equipment and robotics products. Its automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries.
Robotics products include collaborative robotic arms and autonomous mobile robots (“AMRs”) that are used by global manufacturing, logistics and industrial customers.
Teradyne's semiconductor test products are used both for wafer level and device package testing of semiconductor devices. Its product portfolio comprises the FLEX Test platform, J750 test system, Magnum test platform and ETS platform, each tailored for specific semiconductor testing needs.
The company’s system Test segment is comprised of three business units: Storage Test, Defense/Aerospace and Production Board Test. Wireless Test business operates under the LitePoint brand name and provides test solutions utilized in the development and manufacturing of wireless devices and modules.
The Robotics segment comprises two business units: Universal Robots and Mobile Industrial Robots (MiR).
Universal Robots offers a variety of collaborative robot models, including the UR3, UR5, UR10, UR16 and UR20, each with different weight carrying capacity and arm reach. MiR offers four collaborative autonomous mobile robot models, MiR100, MiR250, MiR600 and MiR1350, each with a different payload carrying capacity.
Teradyne reports revenues primarily under four segments: Semiconductor Test, System Test, Robotics, and Wireless Test. In 2023, the company reported revenues of $2.68 billion.
Teradyne competes globally with key rivals like Advantest, Cohu, Keysight, Test Research, SPEA, Rohde & Schwarz, Anritsu, KUKA, ABB, FANUC, Yaskawa, Techman, Doosan, AUBO, Omron, Fetch, OTTO Motors, Vecna, Seegrid and Balyo.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Teradyne ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in July 2014 would be worth $7,785.28, or a 678.53% gain, as of July 23, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 180.53% and gold's return of 76.40% over the same time frame.
Looking ahead, analysts are expecting more upside for TER.
Teradyne is benefiting from its robust and diversified portfolio. Improving memory and compute outlook driven by positive impact of AI-driven applications on test demand is expected to drive top-line growth despite weakness in mobile, legacy auto and industrial end-markets. These markets are now expected to recover in 2025. Compute total addressable market (TAM) is now expected to be $1.5 billion, while SOC TAM remains unchanged between $3.6 billion and $4.2 billion. Memory TAM also increases to $1.3 billion driven by strong demand for HBM. However, Teradyne lowers TAM for auto, mobile and industrial end-markets. Robotics are expected to grow sequentially in the second quarter of 2024. Teradyne expects to deliver 10% to 20% growth in 2024. However, excess inventory is likely to hurt semiconductor growth in the near term.
Shares have gained 6.14% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.