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• Teradyne reported second-quarter revenue of $1.30 billion and EPS of $2.47, both ahead of analyst estimates.
• CEO Greg Smith said AI-related demand supported another record quarter and expects wafer fab investment to drive growth into 2027.
• Retail investors on Stockwits said Teradyne's results could be a positive read-through for Marvell Technology.

Shares of Teradyne (TER) climbed in pre-market trade on Wednesday after the semiconductor test equipment maker reported second-quarter results that topped Wall Street expectations, prompting Goldman Sachs to reiterate its bullish stance on the stock.

In a note to clients cited by The Fly, Goldman Sachs said it expects the stock to move higher because both the quarterly results and forward guidance exceeded Street expectations, even against already optimistic investor positioning. The firm maintained its ‘Buy’ rating and $465 price target on the shares.

CEO Greg Smith said AI demand remains "robust" and that industry investment is laying the groundwork for continued growth beyond 2027. TER stock rose over 8% before the opening bell and ranked among the top trending tickers on Stocktwits.

Teradyne Tops Wall Street Expectations

Teradyne reported second-quarter revenue (Q2) of $1.30 billion, above analysts' expectations of $1.20 billion, while earnings came in at $2.47 per share, ahead of the consensus estimate of $2.09, as per Koyfin data.

Revenue more than doubled from a year earlier, while operating income climbed nearly fourfold to $437.8 million. Gross profit rose 113% year over year to $794.6 million, and operating cash flow increased 158% to $469.1 million.

For the third quarter (Q3), Teradyne guided for revenue between $1.20 billion and $1.30 billion, as well as earnings of $1.85 to $2.15 per share.

"Our strategy to capture test and robotics opportunities from wafer to AI data center has driven another record quarter," Chief Executive Greg Smith said. "This strength became evident in the year-on-year market expansion for all three of our business groups. In the short term, our Q3 guidance reflects robust AI-related demand. Looking further ahead, a rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond."

Retail Traders Say Results Could Lift Marvell

Retail sentiment on Stockwits around TER stock rose to ‘bullish’ from ‘bearish’ territory over the past day. Chatter increased to ‘high’ from ‘normal.’ Platform data showed a 2400% increase in message volume.

Some retail traders speculated that Teradyne's results could have positive implications for Marvell Technology (MRVL), citing the close relationship between the companies' exposure to AI infrastructure spending.

Despite that optimism, MRVL stock edged about 0.2% lower in pre-market trading, while Stocktwits sentiment around the shares remained in 'bearish' territory over the past day.

TER’s stock has gained over 65% this year, while MRVL stock has more than doubled in value.

Read also: SNDK Stock Plunges Over 30% In 3 Days Amid Semiconductor Rout – Retail Traders Debate Whether $1,000 Will Hold

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