Here's Why AI Demand Sent Teradyne Stock Up 20% Today

Another day, another big move in an artificial intelligence (AI)-related stock. Today it was the turn of the automated test systems company Teradyne (NASDAQ: TER), whose stock was up by almost 20% as of 2 p.m. ET today.The move comes after a stellar set of third-quarter earnings (revenue up 18% year over year) and management's guidance for the fourth quarter, which calls for a revenue increase of 25% and a whopping 56% increase (at the midpoint of guidance) in earnings per share (EPS) compared to the third quarter.The reason for the string performance comes down to its Semiconductor Test Group, with CEO Greg Smith noting during the earnings presentation: "Growth was driven primarily by System-on-a-Chip (SOC) solutions for artificial intelligence applications and strong performance in memory. As we look ahead to Q4, AI-related test demand remains robust." Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool