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QCOM vs TER
Which Stock Would AI Choose? Qualcomm (QCOM) vs. Teradyne (TER) Stock Comparison
Key Takeaways
- Qualcomm and Teradyne operate at different layers of the semiconductor ecosystem — Qualcomm designs chips for smartphones, automotive, and IoT (Internet of Things), while Teradyne builds the testing equipment that validates those very chips.
- Both companies are riding secular AI tailwinds, but through different channels: Qualcomm through edge AI and data center inference, Teradyne through surging demand for semiconductor test equipment driven by AI chip production.
- Qualcomm generated record quarterly revenue of $12.25 billion in its most recent report, while Teradyne posted full-year 2025 revenue of $3.19 billion, reflecting their vastly different scales.
- Teradyne has shown stronger recent momentum with AI-driven sequential revenue growth of 41% in its latest quarter, while Qualcomm faces near-term headwinds from smartphone memory supply constraints.
- Qualcomm offers a dividend yield around 2% and an aggressive capital return program, whereas Teradyne's valuation reflects higher growth expectations tied to AI infrastructure spending.
- Risk profiles diverge meaningfully: Qualcomm contends with smartphone market saturation and Apple modem exposure, while Teradyne's fortunes are closely linked to cyclical semiconductor capital expenditure cycles.
Introduction
Qualcomm (QCOM) and Teradyne (TER) may both belong to the semiconductor universe, but they serve fundamentally different roles within it. Qualcomm is a fabless chip designer and wireless technology licensor whose Snapdragon processors power hundreds of millions of smartphones, vehicles, and connected devices. Teradyne is a leading manufacturer of automated test equipment (ATE) and robotics systems — the mission-critical tools that semiconductor companies use to ensure their chips function correctly before shipping. This comparison is particularly relevant for investors weighing exposure to semiconductor growth themes: one offers diversified end-market reach with a value-oriented profile, while the other provides concentrated leverage to AI-driven capital spending on test and validation infrastructure.
QCOM Overview and Recent Performance
Qualcomm operates through two primary segments: Qualcomm CDMA Technologies (QCT), which designs and sells semiconductor products including the widely recognized Snapdragon platform, and Qualcomm Technology Licensing (QTL), which monetizes the company's extensive patent portfolio in wireless communications. The company has been steadily executing a diversification strategy aimed at reducing its historical reliance on smartphone chips. In its fiscal first quarter of 2026 (ending December 28, 2025), Qualcomm delivered record total company revenue of $12.25 billion, a 5% year-over-year increase, with non-GAAP earnings per share (EPS) of $3.50 that exceeded consensus estimates. The automotive segment posted its second consecutive quarter above $1 billion in revenue, growing 15%, while IoT revenue rose 9%. The company also completed its acquisition of Alphawave Semi, accelerating its expansion into the data center AI inference market.
However, sentiment in recent weeks has been tempered by a cautious near-term outlook. Qualcomm's guidance for its fiscal second quarter called for revenue between $10.2 billion and $11.0 billion, below the analyst consensus of roughly $11.2 billion, citing industry-wide memory supply constraints and elevated memory pricing that are suppressing handset production volumes among some customers. The company's stock has experienced periods of pressure as investors weigh the smartphone headwinds against the long-term potential of the automotive, IoT, and data center initiatives. Qualcomm remains a strong capital return story, generating $12.8 billion in free cash flow during fiscal 2025 and returning nearly all of it to shareholders through dividends and share repurchases.
TER Overview and Recent Performance
Teradyne designs, develops, and manufactures automated test equipment and advanced robotics systems. Its Semiconductor Test division — by far the largest revenue contributor — serves chipmakers who require high-precision testing for System-on-a-Chip (SOC) designs, memory, and other semiconductor components. The company also operates a Product Test segment and a Robotics business that includes collaborative robots (cobots) and autonomous mobile robots for manufacturing and warehouse environments. In the final quarter of 2025, Teradyne delivered standout results: revenue reached $1.083 billion, surging 44% year-over-year and 41% sequentially, well above the high end of guidance. Full-year 2025 revenue totaled $3.19 billion, representing 13% growth over 2024, with non-GAAP EPS of $3.96.
The recent performance has been overwhelmingly driven by AI-related demand across compute, networking, and memory segments within the Semiconductor Test business. CEO Greg Smith highlighted robust momentum and guided for first-quarter 2026 revenue between $1.15 billion and $1.25 billion, signaling confidence that the AI investment cycle remains far from exhausted. The stock has exhibited significant volatility — over the past year, Teradyne shares recorded more than two dozen moves exceeding 5%, reflecting the market's heightened sensitivity to AI-related growth narratives and shifts in risk appetite. Despite this turbulence, Teradyne's positioning as a critical enabler of advanced chip production has attracted considerable investor attention.
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Head-to-Head Comparison
The most fundamental distinction between QCOM and TER lies in their roles within the semiconductor value chain. Qualcomm is a product company — it designs end-use chips and licenses technology, generating revenue from the sale of each Snapdragon-powered device and each patent royalty. Teradyne is an enabler — it supplies the capital equipment without which chipmakers cannot validate, qualify, or ship their products. This difference creates contrasting growth dynamics: Qualcomm's revenue scales with unit volumes and content-per-device, while Teradyne's revenue tracks semiconductor industry capital expenditure (capex) budgets.
In terms of scale, Qualcomm is the far larger entity, with annual revenue exceeding $44 billion compared to Teradyne's $3.19 billion. But size does not tell the whole story. Teradyne has recently demonstrated substantially faster sequential and year-over-year revenue growth, fueled by an AI capex super-cycle that shows few signs of abating. Qualcomm, by contrast, is navigating a more mature smartphone market that accounts for the majority of its QCT revenue, even as its diversification efforts in automotive, IoT, and data centers gain traction.
Valuation multiples reflect these different profiles. Qualcomm has historically traded at a compressed price-to-earnings (P/E) multiple — often in the low-to-mid teens — due to concerns about Apple modem exposure, smartphone saturation, and licensing uncertainties. Teradyne, benefiting from the AI investment narrative, has commanded higher multiples, though with considerably more share price volatility. Risk factors also diverge: Qualcomm's key risks include the potential loss of Apple modem business, geopolitical tensions affecting handset supply chains, and execution risk in newer markets. Teradyne's primary risk is the cyclical nature of semiconductor capex, which can contract sharply during industry downturns, as well as concentration in a relatively small number of large chipmaker customers.
Tickeron AI Verdict
Based on observable trend consistency, momentum trajectories, and near-term catalysts, Tickeron's AI analytical framework would likely express a relative preference for TER in the current environment. Teradyne's sequential revenue acceleration, upward earnings revisions, and direct exposure to the AI infrastructure buildout create a clearer momentum profile. The company's forward guidance has exceeded expectations, and the demand driver — AI chip proliferation requiring increasingly sophisticated testing — appears structurally durable. Qualcomm, while fundamentally sound and attractively valued on many metrics, is currently contending with a visible near-term headwind in the form of memory supply constraints affecting its core handset business. That said, no AI model can predict market outcomes with certainty, and the relative attractiveness of these two stocks may shift as conditions evolve. The verdict reflects probabilistic assessment of current data, not a permanent judgment on either company's long-term prospects.
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.
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 QCOM 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).
QCOM’s FA Score shows that 1 FA rating(s) are green whileTER’s FA Score has 1 green FA rating(s).
- QCOM’s FA Score: 1 green, 4 red.
- TER’s FA Score: 1 green, 4 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.
QCOM’s TA Score shows that 3 TA indicator(s) are bullish while TER’s TA Score has 4 bullish TA indicator(s).
- QCOM’s TA Score: 3 bullish, 5 bearish.
- TER’s TA Score: 4 bullish, 5 bearish.
Price Growth
QCOM (@Semiconductors) experienced а -7.42% price change this week, while TER (@Electronic Production Equipment) price change was -2.15% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -2.72%. For the same industry, the average monthly price growth was -16.38%, and the average quarterly price growth was +44.54%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.71%. For the same industry, the average monthly price growth was -18.74%, and the average quarterly price growth was +55.98%.
Reported Earning Dates
QCOM is expected to report earnings on Aug 05, 2026.
TER is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Semiconductors (-2.72% 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 (-0.71% 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.
| QCOM | TER | QCOM / TER | |
| Capitalization | 180B | 52.2B | 345% |
| EBITDA | 14B | 1.14B | 1,229% |
| Gain YTD | 0.583 | 72.570 | 1% |
| P/E Ratio | 18.31 | 61.92 | 30% |
| Revenue | 44.5B | 3.79B | 1,175% |
| Total Cash | 9.8B | 246M | 3,983% |
| Total Debt | 15.3B | 82.4M | 18,568% |
QCOM | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 81 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 40 Fair valued | 76 Overvalued | |
PROFIT vs RISK RATING 1..100 | 70 | 38 | |
SMR RATING 1..100 | 27 | 34 | |
PRICE GROWTH RATING 1..100 | 52 | 38 | |
P/E GROWTH RATING 1..100 | 36 | 7 | |
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.
QCOM's Valuation (40) in the Telecommunications Equipment industry is somewhat better than the same rating for TER (76) in the Electronic Production Equipment industry. This means that QCOM’s stock grew somewhat faster than TER’s over the last 12 months.
TER's Profit vs Risk Rating (38) in the Electronic Production Equipment industry is in the same range as QCOM (70) in the Telecommunications Equipment industry. This means that TER’s stock grew similarly to QCOM’s over the last 12 months.
QCOM's SMR Rating (27) in the Telecommunications Equipment industry is in the same range as TER (34) in the Electronic Production Equipment industry. This means that QCOM’s stock grew similarly to TER’s over the last 12 months.
TER's Price Growth Rating (38) in the Electronic Production Equipment industry is in the same range as QCOM (52) in the Telecommunications Equipment industry. This means that TER’s stock grew similarly to QCOM’s over the last 12 months.
TER's P/E Growth Rating (7) in the Electronic Production Equipment industry is in the same range as QCOM (36) in the Telecommunications Equipment industry. This means that TER’s stock grew similarly to QCOM’s over the last 12 months.
| QCOM | TER | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 67% | 2 days ago 85% |
| Momentum ODDS (%) | 2 days ago 70% | 2 days ago 70% |
| MACD ODDS (%) | N/A | 2 days ago 71% |
| TrendWeek ODDS (%) | 2 days ago 70% | 2 days ago 68% |
| TrendMonth ODDS (%) | 2 days ago 70% | 2 days ago 69% |
| Advances ODDS (%) | 13 days ago 65% | 2 days ago 79% |
| Declines ODDS (%) | 6 days ago 74% | 6 days ago 66% |
| BollingerBands ODDS (%) | 2 days ago 76% | 2 days ago 87% |
| Aroon ODDS (%) | 2 days ago 61% | 2 days ago 83% |
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