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STM vs TER
Which Stock Would AI Choose? STMicroelectronics (STM) vs. Teradyne (TER) Stock Comparison
Key Takeaways
- STMicroelectronics reported Q2 2026 revenue of $3.49 billion, up 26% year-over-year, but issued Q3 guidance below consensus, triggering a sharp stock decline of approximately 14-18% in recent sessions.
- Teradyne is scheduled to report Q2 2026 results on July 29, with expectations centered on AI-driven demand for semiconductor test equipment amid broader sector volatility.
- Both companies operate in the semiconductor space, with STMicroelectronics focused on analog and mixed-signal chips across automotive and industrial markets, while Teradyne specializes in automated test equipment and robotics.
- STM shares have experienced significant downward pressure in recent weeks following earnings, trading near $51.54 as of July 24, 2026, whereas TER has shown resilience with notable year-to-date gains despite periodic market swings.
- Analyst sentiment remains generally constructive for both, with multiple Buy ratings maintained, though price targets have been adjusted lower for STM in the immediate aftermath of its results.
- Relative performance highlights contrasts in timing of catalysts, with STM digesting a guidance miss and TER positioned ahead of its earnings release.
Introduction
This comparison examines STMicroelectronics (STM) and Teradyne (TER), two semiconductor-related equities that appeal to investors seeking exposure to technology hardware and testing infrastructure. STM provides analog and mixed-signal semiconductors for diverse end markets, while TER supplies automated test systems critical to chip production and robotics applications. The analysis focuses on recent market dynamics, earnings developments, and positioning to assist traders and investors evaluating relative opportunities in the current environment characterized by AI-driven demand and sector volatility.
STM Overview and Recent Performance
STMicroelectronics is a leading provider of semiconductor solutions, emphasizing analog, mixed-signal, and power management chips used in automotive, industrial, and consumer applications. In recent market activity, the company delivered Q2 2026 results with revenue of $3.49 billion, reflecting 26% year-over-year growth and exceeding expectations. However, Q3 revenue guidance of $3.70 billion fell short of consensus estimates, prompting an immediate selloff. Shares declined notably in the days surrounding the July 23-24 earnings release, closing at $51.54 on July 24 amid broader semiconductor sector concerns. Sentiment has been influenced by the guidance shortfall despite longer-term optimism around data center and AI-related demand cited in management commentary. Share repurchase activity continued during the period, providing some support to the capital return profile.
TER Overview and Recent Performance
Teradyne designs and manufactures automated test equipment for semiconductors along with robotics solutions. The company is scheduled to release Q2 2026 financial results on July 29, with market attention centered on potential AI-related order momentum in its test systems business. Recent trading has featured volatility, including a closing price of $349.92 on July 24 following a session decline, alongside earlier gains driven by sector rotation and analyst target increases. TER has benefited from broader semiconductor strength earlier in the year, with notable year-to-date appreciation. Factors influencing performance include positioning ahead of earnings, Nasdaq-100 inclusion effects, and external variables such as tariff discussions affecting the industry. Management outlook and customer commentary from peers have contributed to constructive expectations heading into the report.
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Head-to-Head Comparison
STM and TER differ in business models: STM manufactures a wide range of chips serving end markets including automotive and industrial, while TER provides test equipment essential to semiconductor manufacturing and assembly. Growth drivers for STM include cyclical recovery and data-center opportunities, whereas TER’s prospects tie closely to capacity expansion and AI chip testing volumes. Recent momentum favors TER ahead of its earnings release, while STM has absorbed post-earnings pressure. Risk factors for both include semiconductor cycle sensitivity and macroeconomic influences, though STM’s broader product mix may offer different exposure compared with TER’s more concentrated test-equipment focus. Market sentiment reflects near-term caution on STM guidance versus forward-looking optimism around TER’s AI alignment. Sector exposure overlaps in technology hardware but diverges in value-chain positioning, creating distinct trade-offs for portfolio construction.
Tickeron AI Verdict
Based on observable factors including trend consistency following recent earnings, stability of forward catalysts, and relative positioning within the semiconductor ecosystem, Tickeron’s AI models would currently assign a higher probability of favorable near-term dynamics to TER. The upcoming earnings release and AI-test demand visibility provide a clearer catalyst pathway compared with STM’s post-guidance adjustment phase, though both equities retain structural exposure to technology growth themes.
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 STM is a Buy and TER is a Buy.
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 3 green FA rating(s).
- STM’s FA Score: 1 green, 4 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.
STM’s TA Score shows that 5 TA indicator(s) are bullish while TER’s TA Score has 3 bullish TA indicator(s).
- STM’s TA Score: 5 bullish, 5 bearish.
- TER’s TA Score: 3 bullish, 5 bearish.
Price Growth
STM (@Semiconductors) experienced а +4.14% price change this week, while TER (@Electronic Production Equipment) price change was -0.19% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.65%. For the same industry, the average monthly price growth was -8.14%, and the average quarterly price growth was +39.15%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +1.13%. For the same industry, the average monthly price growth was -7.58%, and the average quarterly price growth was +32.78%.
Reported Earning Dates
STM is expected to report earnings on Oct 29, 2026.
TER is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Semiconductors (+4.65% 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 (+1.13% 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 | 49.8B | 57.1B | 87% |
| EBITDA | 2.71B | 1.49B | 182% |
| Gain YTD | 110.356 | 88.774 | 124% |
| P/E Ratio | 106.57 | 50.15 | 212% |
| Revenue | 13.1B | 4.46B | 293% |
| Total Cash | 6.03B | 355M | 1,699% |
| Total Debt | 4.03B | 100M | 4,025% |
STM | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 55 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 70 Overvalued | 70 Overvalued | |
PROFIT vs RISK RATING 1..100 | 70 | 34 | |
SMR RATING 1..100 | 89 | 27 | |
PRICE GROWTH RATING 1..100 | 39 | 2 | |
P/E GROWTH RATING 1..100 | 6 | 22 | |
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.
STM's Valuation (70) in the Semiconductors industry is in the same range as TER (70) in the Electronic Production Equipment industry. This means that STM’s stock grew similarly to TER’s over the last 12 months.
TER's Profit vs Risk Rating (34) in the Electronic Production Equipment industry is somewhat better than the same rating for STM (70) in the Semiconductors industry. This means that TER’s stock grew somewhat faster than STM’s over the last 12 months.
TER's SMR Rating (27) in the Electronic Production Equipment industry is somewhat better than the same rating for STM (89) 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 (2) in the Electronic Production Equipment industry is somewhat better than the same rating for STM (39) in the Semiconductors industry. This means that TER’s stock grew somewhat faster than STM’s over the last 12 months.
STM's P/E Growth Rating (6) in the Semiconductors industry is in the same range as TER (22) 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 (%) | 5 days ago 84% | N/A |
| Stochastic ODDS (%) | 5 days ago 79% | 5 days ago 67% |
| Momentum ODDS (%) | 5 days ago 76% | 5 days ago 71% |
| MACD ODDS (%) | 5 days ago 69% | 5 days ago 65% |
| TrendWeek ODDS (%) | 5 days ago 71% | 5 days ago 80% |
| TrendMonth ODDS (%) | 5 days ago 71% | 5 days ago 81% |
| Advances ODDS (%) | 5 days ago 70% | 12 days ago 79% |
| Declines ODDS (%) | 9 days ago 71% | 5 days ago 66% |
| BollingerBands ODDS (%) | 5 days ago 85% | 5 days ago 74% |
| Aroon ODDS (%) | 5 days ago 67% | N/A |
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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 72% 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% | -3.12% | ||
| ON - STM | 72% Closely correlated | -1.71% | ||
| ENTG - STM | 69% Closely correlated | -5.17% | ||
| MCHPP - STM | 68% Closely correlated | -3.35% | ||
| MCHP - STM | 67% Closely correlated | -3.90% | ||
| KLIC - STM | 67% Closely correlated | -5.27% | ||
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