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TER vs TXN
Which Stock Would AI Choose? Teradyne (TER) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- TER has delivered explosive year-to-date gains of approximately 96%, far outpacing TXN's 54% rise, fueled by AI-driven demand in semiconductor testing.
- Recent quarterly results for TER beat expectations with revenue over $1.2 billion, though shares dipped amid broader market pressures.
- TXN offers greater stability with a lower beta of 0.99 and a dividend yield around 2.1%, appealing to income-focused investors.
- Valuation metrics show TER's P/E ratio (price-to-earnings ratio) exceeding 100 versus TXN's mid-40s, highlighting growth premiums for TER.
- Both stocks benefit from semiconductor sector tailwinds, but TER's exposure to robotics and AI testing provides higher momentum potential.
- Market caps differ significantly: TXN at over $240 billion dwarfs TER's $60 billion, influencing liquidity and risk profiles.
Introduction
In the dynamic semiconductor sector, TER and TXN represent contrasting plays on chip industry growth. TER, focused on automated testing and robotics, caters to high-growth AI applications, while TXN, a leader in analog and embedded chips, emphasizes reliable manufacturing and dividends. This stock comparison suits active traders eyeing momentum shifts and long-term investors assessing relative performance in recent market activity. By examining business models, recent trends, and sentiment, readers gain insights into positioning amid sector volatility and AI catalysts.
TER Overview and Recent Performance
Teradyne (TER) designs, manufactures, and sells automated test systems for semiconductors and robotics solutions, serving AI, automotive, and industrial markets. In recent market activity, TER shares have surged over 400% in the past year, with year-to-date gains near 96%, driven by robust demand for testing equipment amid AI chip booms. The latest quarterly earnings exceeded forecasts, posting revenue above $1.2 billion and EPS (earnings per share) of $2.56, yet shares pulled back due to guidance signaling sequential declines and geopolitical concerns. Positive analyst updates, including raised price targets to $430, reflect optimism around robotics growth and AI tailwinds, though high volatility (beta ~1.8) tempers sentiment.
TXN Overview and Recent Performance
Texas Instruments (TXN) is a premier designer and manufacturer of analog semiconductors and embedded processors for automotive, industrial, and consumer electronics. Shares have climbed about 54% year-to-date and 68% over the past year, supported by steady demand and a strong dividend profile yielding over 2%. Recent analyst actions include upgraded price targets amid positive sector outlook, with shares trading near multi-month highs despite minor pullbacks. Profit margins near 29% and ROE (return on equity) above 32% underscore operational strength, influencing favorable sentiment. Lower volatility (beta ~1.0) positions TXN as a defensive pick in semiconductor rotations.
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Head-to-Head Comparison
TER and TXN both thrive in semiconductors but diverge in models: TER specializes in testing and robotics (growth-oriented, cyclical), while TXN focuses on chip production (diversified, stable). Growth drivers favor TER via AI testing demand versus TXN's analog steadiness. Recent momentum tilts to TER with triple-digit YTD gains, but TXN shows resilience. Risks include TER's elevated P/E and volatility versus TXN's inventory cycles. Sector exposure overlaps in autos/industrials, yet sentiment leans bullish for both amid AI, with TER riskier for aggressive plays.
Tickeron AI Verdict
Tickeron’s AI currently favors TER due to superior trend consistency, explosive momentum from AI catalysts, and relative positioning in high-growth testing. While TXN offers stability and yield, TER's outperformance probability edges higher in bullish semi environments, though with elevated volatility.
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 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 TER is a Hold and TXN 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).
TER’s FA Score shows that 3 FA rating(s) are green whileTXN’s FA Score has 4 green FA rating(s).
- TER’s FA Score: 3 green, 2 red.
- TXN’s FA Score: 4 green, 1 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.
TER’s TA Score shows that 5 TA indicator(s) are bullish while TXN’s TA Score has 3 bullish TA indicator(s).
- TER’s TA Score: 5 bullish, 3 bearish.
- TXN’s TA Score: 3 bullish, 5 bearish.
Price Growth
TER (@Electronic Production Equipment) experienced а +14.82% price change this week, while TXN (@Semiconductors) price change was +8.67% for the same time period.
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%.
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%.
Reported Earning Dates
TER is expected to report earnings on Jul 28, 2026.
TXN is expected to report earnings on Jul 22, 2026.
Industries' Descriptions
@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.
@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.
| TER | TXN | TER / TXN | |
| Capitalization | 68.6B | 294B | 23% |
| EBITDA | 1.14B | 8.82B | 13% |
| Gain YTD | 126.425 | 88.264 | 143% |
| P/E Ratio | 81.25 | 55.19 | 147% |
| Revenue | 3.79B | 18.4B | 21% |
| Total Cash | 246M | 5.1B | 5% |
| Total Debt | 82.4M | 14B | 1% |
TER | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 80 Overvalued | 72 Overvalued | |
PROFIT vs RISK RATING 1..100 | 13 | 19 | |
SMR RATING 1..100 | 34 | 31 | |
PRICE GROWTH RATING 1..100 | 2 | 4 | |
P/E GROWTH RATING 1..100 | 5 | 21 | |
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.
TXN's Valuation (72) in the Semiconductors industry is in the same range as TER (80) in the Electronic Production Equipment industry. This means that TXN’s stock grew similarly to TER’s over the last 12 months.
TER's Profit vs Risk Rating (13) in the Electronic Production Equipment industry is in the same range as TXN (19) in the Semiconductors industry. This means that TER’s stock grew similarly to TXN’s over the last 12 months.
TXN's SMR Rating (31) in the Semiconductors industry is in the same range as TER (34) in the Electronic Production Equipment industry. This means that TXN’s stock grew similarly to TER’s over the last 12 months.
TER's Price Growth Rating (2) in the Electronic Production Equipment industry is in the same range as TXN (4) in the Semiconductors industry. This means that TER’s stock grew similarly to TXN’s over the last 12 months.
TER's P/E Growth Rating (5) in the Electronic Production Equipment industry is in the same range as TXN (21) in the Semiconductors industry. This means that TER’s stock grew similarly to TXN’s over the last 12 months.
| TER | TXN | |
|---|---|---|
| RSI ODDS (%) | N/A | 5 days ago 68% |
| Stochastic ODDS (%) | 5 days ago 65% | 5 days ago 62% |
| Momentum ODDS (%) | 5 days ago 73% | 5 days ago 61% |
| MACD ODDS (%) | 5 days ago 70% | 5 days ago 44% |
| TrendWeek ODDS (%) | 5 days ago 78% | 5 days ago 61% |
| TrendMonth ODDS (%) | 5 days ago 80% | 5 days ago 57% |
| Advances ODDS (%) | 8 days ago 78% | 8 days ago 58% |
| Declines ODDS (%) | 6 days ago 67% | 6 days ago 57% |
| BollingerBands ODDS (%) | 5 days ago 73% | 5 days ago 52% |
| Aroon ODDS (%) | 5 days ago 85% | 5 days ago 54% |
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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% | +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% | ||
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TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHPP. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHPP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | +6.95% | ||
| MCHPP - TXN | 76% Closely correlated | +5.36% | ||
| MCHP - TXN | 75% Closely correlated | +6.01% | ||
| ADI - TXN | 74% Closely correlated | +4.83% | ||
| LRCX - TXN | 68% Closely correlated | +3.97% | ||
| ENTG - TXN | 67% Closely correlated | +13.62% | ||
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