Advertisement
ADI vs TER
Which Stock Would AI Choose? Analog Devices, Inc. (ADI) vs. Teradyne, Inc. (TER) Stock Comparison
Key Takeaways
- Teradyne’s stock has outperformed Analog Devices over the past month, gaining roughly 15% versus ADI’s 12% YTD increase.
- Analog Devices reported strong automotive‑chip demand and a 41% adjusted operating margin in its Q4 fiscal 2024 results.
- Teradyne posted record memory‑test growth, a 59.6% gross margin and an adjusted operating margin above 40% in Q3 fiscal 2024.
- Both companies face macro‑economic inventory headwinds, but ADI benefits from a higher dividend yield and larger free‑cash‑flow generation.
- AI‑driven test equipment and semiconductor solutions are key growth catalysts for both, yet Teradyne’s AI‑related demand is currently accelerating faster.
Introduction
Investors and traders seeking exposure to the rapidly evolving artificial‑intelligence (AI) ecosystem often debate whether a pure‑play semiconductor company or a test‑equipment specialist offers the better risk‑adjusted upside. This article pits ADI (Analog Devices, Inc.) against TER (Teradyne, Inc.) – two publicly traded firms whose products sit at opposite ends of the AI value chain. The comparison is relevant for growth‑focused equity traders, dividend‑seeking investors, and anyone weighing sector‑specific exposure in the current market environment.
ADI Overview and Recent Performance
Analog Devices, Inc. (ADI) is a global semiconductor leader that designs high‑performance analog, mixed‑signal and digital signal processing solutions for industrial, automotive, communications and consumer markets. In its fiscal fourth quarter 2024, ADI reported revenue of $2.44 billion, down 10% YoY but still above the midpoint of its guidance, and an adjusted earnings per share (EPS) of $1.67, beating consensus estimates. The company highlighted a “steady pick‑up” in automotive‑chip orders, driven by electric‑vehicle (EV) power‑train and advanced driver‑assistance systems (ADAS) requirements. Adjusted operating margin expanded to 41.1%, reflecting disciplined cost control and a gross margin of 67.9%. ADI returned $2.4 billion to shareholders through a $0.92 quarterly dividend and $0.6 billion of share repurchases, while free‑cash‑flow reached $3.12 billion for the fiscal year. The stock has added roughly 12% since the start of the year, supported by resilient cash generation and a solid dividend yield.
TER Overview and Recent Performance
Teradyne, Inc. (TER) supplies automated test equipment for semiconductors, wireless devices and industrial robotics. For the third quarter of fiscal 2024, Teradyne posted revenue of $737 million, up 5% YoY, and GAAP EPS of $0.89 with non‑GAAP EPS of $0.90, both surpassing market expectations. The earnings beat was fueled by strong memory‑test demand, especially in high‑bandwidth memory (HBM) and AI compute workloads, which lifted the semiconductor‑test segment to $543 million. Gross margin reached 59.6%, and adjusted operating margin held steady above 40%. The company raised its full‑year EPS outlook and reaffirmed a quarterly dividend of $0.12 per share. Teradyne’s shares have risen about 14.7% YTD, reflecting investor optimism around AI‑related test demand and the momentum in its robotics vertical.
Trending AI Robots
Tickeron’s Trending AI Robots page showcases a curated set of AI‑driven trading bots from a library of hundreds that trade thousands of tickers. Each bot is evaluated on strategy type (e.g., momentum, mean‑reversion), timeframe (intraday to multi‑week), performance metrics (win‑rate, Sharpe ratio) and the specific set of symbols it trades. While Tickeron offers a broad suite of bots, only those demonstrating consistent edge and suitability for the current market environment earn a place in the “Trending” section. This dynamic ranking helps traders discover high‑probability, algorithmic approaches without sifting through the entire catalog.
Head-to-Head Comparison
- Business Model: ADI designs and sells analog and mixed‑signal chips, generating recurring revenue through long‑term customer relationships. TER sells test equipment and software services, with a mix of capital‑goods sales and recurring service contracts.
- Growth Drivers: ADI’s upside stems from automotive electrification, AI‑enabled edge devices, and industrial automation. TER’s growth is tied to AI‑driven memory testing, increased semiconductor wafer volumes, and expanding robotics automation platforms.
- Recent Momentum: TER’s YTD price appreciation (~15%) exceeds ADI’s (~12%), supported by faster earnings beat frequency and higher gross margin expansion. ADI, however, offers stronger free‑cash‑flow generation ($3.12 billion FY) and a higher dividend yield.
- Risk Factors: ADI faces macro‑economic inventory reductions and cyclical demand in industrial segments, while TER is exposed to the cyclicality of semiconductor test spend and potential supply‑chain bottlenecks for test equipment components.
- Sector Exposure: Both sit in the broader technology sector, but ADI leans toward the semiconductor‑hardware sub‑industry, whereas TER aligns with test‑equipment and industrial automation, giving them differentiated sensitivities to economic cycles.
- Market Sentiment: Analyst coverage has recently upgraded TER’s earnings outlook amid AI‑related memory demand, whereas ADI’s consensus remains cautious, reflecting inventory concerns despite solid margins.
Tickeron AI Verdict
Based on observable factors – Teradyne’s sharper YTD price momentum, higher growth rate in AI‑related memory testing, and a more aggressive earnings‑beat trajectory – Tickeron’s AI model would currently assign a slightly higher probabilistic preference to TER. That said, the model also registers Analog Devices’ robust free‑cash‑flow generation, dividend yield and expanding automotive‑chip pipeline as mitigating strengths, suggesting a balanced view rather than a definitive “buy.”
Disclaimer
“The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.” Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ADI is a Hold and TER is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ADI’s FA Score shows that 2 FA rating(s) are green whileTER’s FA Score has 3 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- TER’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ADI’s TA Score shows that 6 TA indicator(s) are bullish while TER’s TA Score has 5 bullish TA indicator(s).
- ADI’s TA Score: 6 bullish, 2 bearish.
- TER’s TA Score: 5 bullish, 3 bearish.
Price Growth
ADI (@Semiconductors) experienced а +5.42% price change this week, while TER (@Electronic Production Equipment) price change was +14.82% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +1.75%. For the same industry, the average monthly price growth was +4.75%, and the average quarterly price growth was +107.83%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +1.64%. For the same industry, the average monthly price growth was +16.72%, and the average quarterly price growth was +149.05%.
Reported Earning Dates
ADI is expected to report earnings on Aug 26, 2026.
TER is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Semiconductors (+1.75% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
@Electronic Production Equipment (+1.64% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
| ADI | TER | ADI / TER | |
| Capitalization | 212B | 68.6B | 309% |
| EBITDA | 6.23B | 1.14B | 547% |
| Gain YTD | 61.141 | 126.425 | 48% |
| P/E Ratio | 64.65 | 81.25 | 80% |
| Revenue | 12.7B | 3.79B | 335% |
| Total Cash | 3.44B | 246M | 1,398% |
| Total Debt | 8.69B | 82.4M | 10,540% |
ADI | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 57 Fair valued | 80 Overvalued | |
PROFIT vs RISK RATING 1..100 | 6 | 13 | |
SMR RATING 1..100 | 73 | 34 | |
PRICE GROWTH RATING 1..100 | 7 | 2 | |
P/E GROWTH RATING 1..100 | 49 | 5 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ADI's Valuation (57) in the Semiconductors industry is in the same range as TER (80) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to TER’s over the last 12 months.
ADI's Profit vs Risk Rating (6) in the Semiconductors industry is in the same range as TER (13) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to TER’s over the last 12 months.
TER's SMR Rating (34) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (73) in the Semiconductors industry. This means that TER’s stock grew somewhat faster than ADI’s over the last 12 months.
TER's Price Growth Rating (2) in the Electronic Production Equipment industry is in the same range as ADI (7) in the Semiconductors industry. This means that TER’s stock grew similarly to ADI’s over the last 12 months.
TER's P/E Growth Rating (5) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (49) in the Semiconductors industry. This means that TER’s stock grew somewhat faster than ADI’s over the last 12 months.
| ADI | TER | |
|---|---|---|
| RSI ODDS (%) | 7 days ago 62% | N/A |
| Stochastic ODDS (%) | 5 days ago 73% | 5 days ago 65% |
| Momentum ODDS (%) | 5 days ago 63% | 5 days ago 73% |
| MACD ODDS (%) | 5 days ago 63% | 5 days ago 70% |
| TrendWeek ODDS (%) | 5 days ago 63% | 5 days ago 78% |
| TrendMonth ODDS (%) | 5 days ago 61% | 5 days ago 80% |
| Advances ODDS (%) | 8 days ago 62% | 8 days ago 78% |
| Declines ODDS (%) | 6 days ago 54% | 6 days ago 67% |
| BollingerBands ODDS (%) | 5 days ago 64% | 5 days ago 73% |
| Aroon ODDS (%) | 5 days ago 67% | 5 days ago 85% |
Advertisement
ADI and
Correlation & Price change
A.I.dvisor indicates that over the last year, ADI has been closely correlated with LRCX. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADI jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To ADI | 1D Price Change % | ||
|---|---|---|---|---|
| ADI | 100% | +4.83% | ||
| LRCX - ADI | 79% Closely correlated | +3.97% | ||
| KLAC - ADI | 79% Closely correlated | +8.73% | ||
| ENTG - ADI | 78% Closely correlated | +13.62% | ||
| KLIC - ADI | 77% Closely correlated | +4.78% | ||
| MCHP - ADI | 76% Closely correlated | +6.01% | ||
More | ||||
TER and
Correlation & Price change
A.I.dvisor indicates that over the last year, TER has been closely correlated with STM. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TER jumps, then STM could also see price increases.
| Ticker / NAME | Correlation To TER | 1D Price Change % | ||
|---|---|---|---|---|
| TER | 100% | +7.19% | ||
| STM - TER | 74% Closely correlated | +6.86% | ||
| TXN - TER | 72% Closely correlated | +6.95% | ||
| RMBS - TER | 72% Closely correlated | +8.51% | ||
| NXPI - TER | 71% Closely correlated | +5.05% | ||
| ADI - TER | 71% Closely correlated | +4.83% | ||
More | ||||