Teradyne (TER) Goldman Sachs Communacopia + Technology Conference 2024 summary

Executive background and business model

• CFO has 18 years of experience, with roles spanning finance and general management.

• Focus is on maintaining a robust business model, aligning R&D with customer roadmaps, and ensuring attractive financial returns.

• Balances financial management with strategic investments for both top-line and bottom-line growth.

Strategic focus and R&D investment

• R&D and support investments target high-growth areas: compute, VIPs, memory, and automotive.

• OpEx to sales ratio is expected to peak in 2024, then normalize to 28%-31% by 2026.

• Early design wins are critical for market share in sticky segments.

Market trends and segment outlooks

• Mobility test market has declined over 50% since 2021, but compute has grown from $600M to $1.6B.

• Mobility market expected to recover as excess capacity is absorbed and AI integration increases test complexity.

• VIP compute market projected to grow from $200M to $400M-$600M by 2026, with share gains anticipated.

• Automotive and industrial markets are currently weak but expected to recover with macro improvements and EV/ADAS growth.

• Automotive test demand driven by EV transition, ADAS, and battery management systems.