Trading Desk
“Trading idea”: Teradyne – A Special Share Riding the Wave of AI
-
Wolfgang Hagl
Redaktor
Without test equipment, the semiconductor industry would grind to a halt. Teradyne is growing rapidly, but its shares have lost momentum. Leveraged products from BNP Paribas let traders bet on a comeback.
At first glance, the “Magnum Epic” resembles a slightly oversized freezer compartment or a safe. In reality, however, this machine is at the heart of one of the major trends of our time. The “Magnum Epic” is a system for testing semiconductors. It forms part of Teradyne’s product range. Founded in 1960, the US-based company develops and manufactures high-precision test systems for chips, smartphones and other electronic components. In a second division, the Massachusetts-based group offers automation solutions such as robotic arms. Its core business is semiconductors. In the 2025 financial year, more than three-quarters of turnover came from the “Semiconductor Test” segment.
Chip manufacturers put their products through their paces using Teradyne’s equipment before they reach customers. Consequently, the demand for high-performance semiconductors, fuelled by the AI boom, is driving business growth: in the second quarter of 2026, Teradyne more than doubled its turnover to around USD 1.3 billion. On balance, the company earned USD 2.47 per share – more than four times the profit generated in the same period last year. “Our strategy of capitalising on opportunities in the areas of testing and robotics – from wafers to AI data centres – has led to another record quarter,” said CEO Greg Smith. For the current quarter, he expects revenue of between USD 1.2 and 1.3 billion, whilst earnings per share are forecast to reach between USD 1.85 and USD 2.15. By way of comparison, revenue in the third quarter of 2025 stood at USD 769 million. The company’s net profit per share was USD 0.85. “Looking ahead, the rapid rise in investment in wafer fab equipment is laying the groundwork for sustained growth in 2027 and beyond,” said Smith, commenting on the outlook.
“Teradyne is growing – the share price is poised for a comeback.”
Naturally, this success story from the second tier of the AI boom has not gone unnoticed on Wall Street. Over a twelve-month period, Teradyne’s share price has risen by 215%. Recently, however, the share price has lost some momentum. Doubts about the sustainability and profitability of AI investments have put pressure on the semiconductor sector. This was compounded by high valuations. The correction has brought things back to earth: at the end of August, Teradyne was trading at around 25 times the profits expected for 2028. According to J.P. Morgan, this ratio has averaged 30 in recent years.
The Nasdaq-listed share has recently been added to BNP Paribas’s range of underlyings. The issuer has launched Mini Futures and Knock-out Warrants on Teradyne. These products allow for exposure on both the long and short sides. The Knock-out Call Warrant is designed to capitalise on a rise in the share price. The Warrant currently offers a leverage of 7.12 on positive price movements. The Stop Loss is set at USD 300.458, which is just under a seventh below the underlying share price. This margin should not obscure the fact that disproportionate losses are a risk should the Teradyne share price fall.
Product information*
| ISIN | CH1595906475 |
| Product type | Knock-out Call Warrant |
| Underlying | Teradyne |
| Issuer | BNP Paribas |
| Rating | A+ (S&P) |
| Underlying currency | USD |
| Trading currency | CHF |
| First trading day | 25 August 2026 |
| Maturity | open-end |
| Leverage* | 7.12 |
| Stop loss* | USD 300.458 |
| Financing level | USD 300.458 |
| Ask* | CHF 6.41 |
| Ask underlying* | USD 348.814 |
| Exchange | Swiss DOTS |
| Web link | bnp.ch/CH1595906475 |
Price performance Teradyne
