Teradyne (TER) Goldman Sachs Communacopia + Technology Conference 2026 summary

Business mix and AI exposure

• Semiconductor test accounts for about 80% of revenue, robotics and product test each about 10%, with recent growth in semi test.

• All segments are increasingly interconnected through exposure to the AI build-out, spanning from wafer to data center.

• Customer base is concentrated among hyperscalers with diverse needs across the value chain.

• Robotics business supports test, assembly, and operations in data centers.

• The current period is unique for synergy across business units.

Industry outlook and growth drivers

• AI is expected to remain the dominant force, driving sustained industry growth through 2031-2032.

• Physical AI in robotics, autonomous vehicles, and edge devices will become increasingly significant.

• The industry is entering a "golden age" for semiconductors and test, despite expected volatility.

• Test market growth is tied to increasing semiconductor capital spend, projected to reach $250–$300 billion by 2028–2030.

• Test intensity is rising due to multi-die packaging, requiring higher quality and more comprehensive testing.

Compute, custom silicon, and networking opportunities

• Recent qualification as a second vendor for a major compute customer, with volume ramp expected in 2027.

• Share in compute accounts could reach up to 30% over the next 3–5 years, with further gains based on differentiation.

• Two major cloud hyperscalers are now customers, with majority share in one by 2026 and meaningful share in the other by 2027.

• Each hyperscaler account represents hundreds of millions to $1 billion in annual TAM.

• AI ASIC business is expected to outpace networking growth due to higher test intensity.