Teradyne (TER) Cantor Fitzgerald Global Technology & Industrial Growth Conference summary

Market dynamics and outlook

• Current market strength began in Q3 last year and is expected to continue through Q2 this year, with a possible digestion period afterward as customers absorb recent investments.

• Visibility for the second half of the year is limited, with potential for a boost in the memory market.

• The traditional seasonal pattern has shifted, and market cycles now span across calendar years.

AI compute and hyperscaler trends

• AI compute market share remains around 50%, with upside potential above the $800 million TAM by 2028.

• Share among hyperscalers is expected to fluctuate as program ramps shift between major players.

• Additional hyperscalers are expected to ramp, offering further share capture opportunities.

• Dual sourcing is already occurring, providing both risk and opportunity, but overall seen as a net positive.

GPU and competitive positioning

• Qualification for a major GPU account is expected in the first half of this year, with production in the second half and gradual share gains through 2027.

• Fast follower strategy will allow earlier engagement in new product cycles, driving higher share over time.

• Dual sourcing in GPUs is expected to mature over three or more years, with share managed based on customer satisfaction.