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STM vs TER
Which Stock Would AI Choose? STMicroelectronics N.V. (STM) vs. Teradyne, Inc. (TER) Stock Comparison
Key Takeaways
- Both STM and TER have delivered strong year-to-date (YTD) gains, with TER at approximately 96% and STM at 92%, reflecting semiconductor sector momentum.
- TER shows superior one-year returns of nearly 397%, far outpacing STM's 117%, driven by AI testing demand.
- Recent quarterly results highlight contrasts: STM reported revenue growth of 23% year-over-year (Y/Y) amid an earnings miss, while TER beat estimates with 44% Y/Y revenue growth but guided for sequential declines.
- TER boasts stronger profitability with a 17% profit margin and 20% return on equity (ROE, a measure of how efficiently profits are generated from shareholders' equity), compared to STM's 1% margin and under 1% ROE.
- Both stocks exhibit upward trends in recent market activity, with STM up over 50% in the past month and TER up nearly 30%.
Introduction
STMicroelectronics N.V. and Teradyne, Inc. operate in the semiconductor ecosystem, with STM focusing on chip design and TER on testing equipment. This comparison is relevant for tech sector investors and traders eyeing AI-driven growth, supply chain dynamics, and relative performance amid volatile market conditions. Both have surged YTD, offering insights into momentum plays versus value opportunities in a sector buoyed by data center and robotics demand.
STM Overview and Recent Performance
STMicroelectronics N.V. (STM) is a global semiconductor leader specializing in analog, mixed-signal, and microcontroller chips for automotive, industrial, and personal electronics applications. In recent market activity, STM shares have shown robust momentum, climbing over 50% in the past month and achieving 92% YTD gains, with a current price around $50. The stock trades near its 52-week high of $51.60, supported by surging earnings estimates and AI data center exposure. Recent quarterly results featured 23% Y/Y revenue growth to $3.1 billion, though earnings per share (EPS, profit allocated per share) missed expectations at $0.13. Sentiment has improved with analyst upgrades and product launches like ultralow-power image sensors, amid broader sector recovery.
TER Overview and Recent Performance
Teradyne, Inc. (TER) provides automated test equipment for semiconductors and robotics solutions, capitalizing on AI chip validation needs. Shares have delivered explosive growth, up 96% YTD and nearly 397% over the past year, recently trading around $380 despite a post-earnings dip. In recent weeks, the stock rose about 30% monthly, reflecting an uptrend with higher highs. Q1 results beat forecasts with $1.28 billion in revenue (44% Y/Y growth) and adjusted EPS of $2.56, fueled by AI demand comprising over 60% of revenue. However, guidance for sequential Q2 declines tempered enthusiasm, alongside market pressures. Positive factors include legal wins in robotics IP and strong analyst support.
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Head-to-Head Comparison
STMicroelectronics designs and sells chips, emphasizing automotive and industrial end-markets, while Teradyne focuses on testing systems critical for AI semiconductors and robotics assembly. Growth drivers differ: TER benefits from surging AI test demand, posting 44% quarterly revenue growth and 76% earnings growth, versus STM’s 23% revenue rise but earnings contraction. Recent momentum favors TER with its multi-year surge, though both show neutral technicals currently. Risk factors include cyclicality for TER’s equipment sales and inventory pressures for STM. Sector exposure aligns in semis, but TER’s higher P/E (109 trailing) reflects premium valuation versus STM’s 316, with TER showing superior margins and ROE. Market sentiment leans positive for both, with recent upgrades.
Tickeron AI Verdict
Tickeron’s AI currently favors TER due to its consistent trend strength, superior relative performance, AI catalysts, and robust fundamentals like higher growth rates and profitability. While STM offers recovery potential, TER’s positioning suggests higher probability of outperformance in the near term amid semiconductor upcycles.
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 STM is a Hold and TER is a StrongBuy.
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).
STM’s FA Score shows that 1 FA rating(s) are green whileTER’s FA Score has 2 green FA rating(s).
- STM’s FA Score: 1 green, 4 red.
- TER’s FA Score: 2 green, 3 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.
STM’s TA Score shows that 3 TA indicator(s) are bullish while TER’s TA Score has 6 bullish TA indicator(s).
- STM’s TA Score: 3 bullish, 4 bearish.
- TER’s TA Score: 6 bullish, 2 bearish.
Price Growth
STM (@Semiconductors) experienced а +2.03% price change this week, while TER (@Electronic Production Equipment) price change was -4.38% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -7.85%. For the same industry, the average monthly price growth was +10.34%, and the average quarterly price growth was +77.02%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -5.00%. For the same industry, the average monthly price growth was -6.66%, and the average quarterly price growth was +104.91%.
Reported Earning Dates
STM is expected to report earnings on Jul 23, 2026.
TER is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Semiconductors (-7.85% 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 (-5.00% 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.
| STM | TER | STM / TER | |
| Capitalization | 64.8B | 56B | 116% |
| EBITDA | 2.32B | 1.14B | 203% |
| Gain YTD | 173.406 | 85.067 | 204% |
| P/E Ratio | 442.00 | 66.41 | 666% |
| Revenue | 12.4B | 3.79B | 327% |
| Total Cash | 4.57B | 215M | 2,126% |
| Total Debt | 2.78B | 283M | 983% |
STM | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 89 | 85 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 90 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 46 | 20 | |
SMR RATING 1..100 | 91 | 34 | |
PRICE GROWTH RATING 1..100 | 35 | 35 | |
P/E GROWTH RATING 1..100 | 1 | 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.
TER's Valuation (78) in the Electronic Production Equipment industry is in the same range as STM (90) in the Semiconductors industry. This means that TER’s stock grew similarly to STM’s over the last 12 months.
TER's Profit vs Risk Rating (20) in the Electronic Production Equipment industry is in the same range as STM (46) in the Semiconductors industry. This means that TER’s stock grew similarly to STM’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 STM (91) in the Semiconductors industry. This means that TER’s stock grew somewhat faster than STM’s over the last 12 months.
TER's Price Growth Rating (35) in the Electronic Production Equipment industry is in the same range as STM (35) in the Semiconductors industry. This means that TER’s stock grew similarly to STM’s over the last 12 months.
STM's P/E Growth Rating (1) in the Semiconductors industry is in the same range as TER (5) in the Electronic Production Equipment industry. This means that STM’s stock grew similarly to TER’s over the last 12 months.
| STM | TER | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 65% | N/A |
| Stochastic ODDS (%) | 3 days ago 76% | 3 days ago 66% |
| Momentum ODDS (%) | N/A | 3 days ago 71% |
| MACD ODDS (%) | 3 days ago 77% | 3 days ago 73% |
| TrendWeek ODDS (%) | 3 days ago 72% | 3 days ago 69% |
| TrendMonth ODDS (%) | 3 days ago 71% | 3 days ago 80% |
| Advances ODDS (%) | 5 days ago 71% | 5 days ago 77% |
| Declines ODDS (%) | 3 days ago 70% | 3 days ago 67% |
| BollingerBands ODDS (%) | 3 days ago 73% | 7 days ago 70% |
| Aroon ODDS (%) | 3 days ago 61% | 3 days ago 79% |
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STM and
Correlation & Price change
A.I.dvisor indicates that over the last year, STM has been closely correlated with ON. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if STM jumps, then ON could also see price increases.
| Ticker / NAME | Correlation To STM | 1D Price Change % | ||
|---|---|---|---|---|
| STM | 100% | -9.75% | ||
| ON - STM | 70% Closely correlated | -11.05% | ||
| ENTG - STM | 69% Closely correlated | -10.34% | ||
| KLIC - STM | 67% Closely correlated | -8.71% | ||
| FORM - STM | 65% Loosely correlated | -7.82% | ||
| ACLS - STM | 65% Loosely correlated | -9.09% | ||
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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% | -12.03% | ||
| STM - TER | 74% Closely correlated | -9.75% | ||
| TXN - TER | 72% Closely correlated | -6.65% | ||
| RMBS - TER | 72% Closely correlated | -14.20% | ||
| NXPI - TER | 71% Closely correlated | -8.15% | ||
| ADI - TER | 71% Closely correlated | -6.38% | ||
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