Good morning,
Chips tried to bounce back after last week's sharp semiconductor rout.
Nvidia and the other chipmakers rallied, with AMD up nearly +4% on the day.
But the rebound got capped by geopolitics: fresh U.S. airstrikes on Iran (and another American service member killed) pulled the broad indices off their highs, leaving the S&P 500 and Nasdaq mixed-to-lower despite the chip comeback.
The chips, memory makers and data centers are swinging wildly right now, but AI is here to stay and this is still the early innings.
What comes next? I believe it's a massive push into robotics.
It's the natural path for AI to take, and it's already begun.
Here's something I've been researching.
Teradyne, Inc. (NASDAQ: TER)
It's a recognizable, liquid US name that gives you two of the biggest secular themes in one stock, AI-chip test equipment (the earnings engine, now) and collaborative robots via Universal Robots + MiR (the option on "physical AI," later).
What the company actually does
Teradyne is really two businesses under one ticker,
1) Semiconductor Test (the big one and the majority of revenue)
When a chipmaker produces a processor, memory stack, or AI accelerator, every single unit has to be tested to confirm it works before it ships.
Teradyne builds the machines that do that testing.
Real-world way to picture it: it's the "final exam proctor" for silicon, nothing leaves the fab without passing through gear like Teradyne's.
As AI chips (GPUs, HBM memory, custom accelerators) get more complex, they take longer and more expensive tests, which means more Teradyne machines.
This is why revenue jumped 30% and net income 48% over the past year.
But this little-known stock's designs already power 99% of a critical technology.
Now it's expanding into AI chips for data centers, self-driving cars, and robotics.
Big Tech is racing to license its architecture. Governments are pushing to secure it.
And Wall Street still hasn't caught on.
Click here to see the full report >>>
2) Robotics (the reason it's in this sequence).
Teradyne owns Universal Robots, the market leader in cobots (collaborative robot arms that work safely next to people, no cage required)...
... and MiR (Mobile Industrial Robots), which makes autonomous mobile robots that haul materials around factories and warehouses.
This is the actuator-heavy part: a cobot arm is a stack of precision joints, motors, and force sensors.
Robotics did $91M in Q1 2026, up 32% year-over-year, its fourth straight quarter of sequential growth, and Teradyne just opened a Detroit-area robotics hub to sit closer to auto/manufacturing customers.
3 Reasons Why I Like it
President Trump just said something that should have every income investor sitting up straight.
He declared that America's chips — the chips powering the entire AI revolution — must be designed and built right here at home.
And he named names.
Apple.Nvidia. Even Elon Musk. All lining up to manufacture on American soil. Nvidia alone has pledged $500 billion to make AI chips in the USA — and production is already running ...
| Metric | Value |
|---|---|
| Ticker | NASDAQ TER |
| Price | $339.33 (+5.3% on the day) |
| Market cap | ~$53.1B |
| Revenue (TTM) | $3.79B (+30% YoY) |
| Net income (TTM) | $854M (+48%) · EPS $5.39 (+53%) |
| P/E · Forward P/E | 63x · ~49x |
| Dividend yield | 0.15% (token — not the reason to own it) |
| Robotics segment (Q1'26) | $91M (+32% YoY), 4th straight quarter of sequential growth |
| Analyst view | "Buy" consensus, avg target ~$423 (~25% upside) |
Financials
The trailing numbers are strong: revenue $3.79B (+30%), net income $854M (+48%), EPS $5.39 (+53%).
That growth is overwhelmingly the semiconductor-test side riding AI/data-center chip demand, testing AI accelerators and high-bandwidth memory is a structural volume and complexity tailwind.
Robotics ($91M in Q1'26, +32%) is small but finally showing the momentum bulls have waited years for, notable because Q1 is seasonally the weak quarter and it still grew sequentially off a strong Q4.
Management is leaning into a "physical AI" narrative: AI making cobots easier to deploy and program, which lowers the adoption barrier that has historically capped the segment.
Margins and returns are healthy (this is a high-margin equipment + software business, not a thin-margin turnaround like the Japanese names), which is part of why it commands a premium multiple.
It's a way to rid yourself of overpriced AI stocks before the tech trade breaks down this summer...
And instead move that money into smaller, lesser-known names that are showing real potential to dethrone the "Mag 7".
I even give away a Hotlist and Hitlist of buy and sell ideas that you can act on right now.
Best
-Greg
Watch this when you can
(sponsored) Trump Admin to Pump $1 Billion into this “Off-the-Radar” AI Stock
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