TERTeradyne, Inc.

“I don't think we need to be much -- like we can get to this -- our model in the fast follower phase of this, where we're just doing specific part conversions. And I think we would only need kind of low double-digit share in order for us to hit our model.”

“For the year, we have line of sight to about $50 million in revenue for merchant GPU, but our visibility into the second half is quite limited with increasing contributions over the midterm period.”

“At roughly 75%, compute is the largest portion of our SoC product revenue. This continues the evolution of our test portfolio from being mobile-centric shifting to AI dominant.”

“In Q1, AI-related demand accounted for nearly 70% of our revenue, up from about 60% in Q4 of 2025.”

“AI revenue increased to 15% of the quarter's sales.”

“the long-term view, over the midterm, we expect that a dual source customer is going to be managing share in that 30% to 70% range. It's going to take us a few years to get there because there are so many different part types, so many different SKUs that as an incumbent platform, there's a lot of flexibility about what -- like if you need capacity for a particular device, you know that you have the solution for it on the incumbent platform.”

“we're seeing strength in HDD, driven by greater than 20% annual exabyte growth fueled by AI. This translates into longer test times per drive and a larger HDD TAM and revenue for Teradyne.”

“we expect that this is a meaningful TAM expansion opportunity, which could reach $300 million to $700 million per year over the midterm.”

“this year, we're probably looking at silicon photonics right around 100-ish, maybe a little bit less, maybe a little bit more.”

“the lead time for a tester is on the order of the same as the lead time for the actual wafer, not the wafer front-end equipment. And these are -- our customers are rapidly trying to build out capacity to be able to support all of the phases of production. And so where -- like at the end of the day, these customers are definitely leaning hard into produce -- into creating the front end capacity to increase the number of wafers that go through. But until they actually are seeing the wafers go through, they are holding back on the orders for the test equipment.”

“I think of it more as providing potential upside than something that's in our plan. That we are testing primarily ARM-based CPUs for data center applications. I think we have active design-in opportunities that I expect to be able to convert in this space as well. I would add that in addition to sort of new demand for CPU in agentic, there's also a big trend towards this optimizing data centers for inference at scale.”

“The second product introduction is Omnyx, which is a new production board test platform designed to address the unique set of test challenges for server boards and tray assemblies. This platform uses power, thermal, optical and TDR test capabilities from across all of Teradyne to enable earlier detection of defects that are plaguing the build-out of AI data centers.”

“TestInsight is the leading provider of test development tools that are used with our testers and competing platforms. This acquisition strengthens Teradyne's design to test software capabilities, enabling us to build a virtual test environment, which will reduce time to market for complex AI and networking devices.”

“Our MultiLane Test Products joint venture closed on April 8, and we believe this partnership will accelerate the development of high-speed I/O and data center interconnect test solutions, a critical test need as AI data centers transition from cable-based connections to back plane and mid-plan architectures.”

“in '27, this is primarily going to be associated with scale-out kind of networking. The scale up networking is likely to be even higher volumed, but over a longer period of time like '28, '29. And we are going to be rapidly changing the efficiency of tests at all 4 insertions.”

“The first is Photon 100, which is our platform for silicon photonics and co-packaged optics testing. The Photon 100 is based on our proven UltraFLEXplus tester and is bringing SiPho testing from lab to fab.”

“Our robots are being used in environmental sensing and data centers, and we recently demonstrated a complex physical AI work cell in partnership with Generalist as part of the recent NVIDIA GTC.”

“I am pleased to share that we have received our first multi-system production test orders for merchant GPU in Q1. We expect these systems to ship, be installed and be in production in Q2.”

“our best guess, so far in 2026, that share is quite balanced between us and our competitor.”

“We think about the opportunity presented by AI as 3 superimposed waves, each building on the one before it. We are in the heart of the first wave, which focused on the build-out of general-purpose AI data center capacity. This was behind the massive increase in data center spend in 2025. In 2026, we are entering the second wave. While there is still huge investment in general-purpose AI data centers, these data centers are being augmented with compute silicon optimized for inference at scale. This wave will grow to a high run rate over the next few years. Still yet to come is the Edge AI physical AI wave.”

“This represents a record financial performance for the company, driven by all things AI across all 3 of our business groups.”

“I don't think we're publicly disclosing our expectations for 2026 revenue, mainly because there's so much uncertainty about where in the test flow the investment will go.”