Artificial Intelligence: Teradyne Positions Itself in the Competition
Eulerpool Research Systems •Oct 2, 2024
Takeaways NEW
- Investments in AI infrastructure and specialized hardware are increasing significantly.
- Teradyne is rated as an underrated AI player by Cantor Fitzgerald.
Investments in AI infrastructure are growing rapidly to meet the increasing demands of machine learning, data processing, and AI-driven applications. According to a report by McKinsey, global expenditures on AI infrastructure could grow to up to $500 billion by 2027. A significant portion of these investments is allocated to specialized hardware such as Graphics Processing Units (GPUs) and Application-Specific Integrated Circuits (ASICs), which are essential for training and deploying AI models. NVIDIA, a leading provider of AI chips, has seen a sharply increasing demand for its GPUs, reflecting the growing needs of the industry. CEO Jensen Huang has emphasized that the AI revolution has just begun, necessitating extensive infrastructure investments.
A central element of the AI infrastructure is data centers, which offer specialized facilities for high-density computing environments. Blackstone’s acquisition of AirTrunk for $16 billion underscores the growing importance of this infrastructure. The transaction expands capacity by 800 MW and projects a further increase to over 1 GW. Additionally, investments in cloud-based AI services are rising. Gartner predicts that expenditures on cloud AI infrastructure will increase to over $200 billion by 2026 as companies increasingly shift from local AI implementations to scalable cloud solutions.
Thomas Kurian, CEO of Google Cloud, stated that AI opens entirely new revenue streams for businesses and that cloud infrastructure is the backbone of this transformation. Besides hardware, companies are also investing significantly in data management platforms and storage solutions to handle the vast amounts of data required by AI systems. Forecasts suggest that the global market for AI data infrastructure will grow at an annual rate of 18%.
Another company benefiting from these developments is Teradyne. The company designs, develops, manufactures, and sells automated test systems and robotics products worldwide. Recently, Cantor Fitzgerald upgraded Teradyne’s stock from "Neutral" to "Overweight" and confirmed a price target of $16. Cantor described Teradyne as one of the underrated AI players in the semiconductor sector, with strong leverage in the networking and high-speed memory areas. The solid position in the automotive and industrial testing sectors, as well as robotics and mobile communications, also contributes to the positive assessment.
Eulerpool Markets
Finance Markets
New ReleaseEnterprise Grade
Institutional
Financial Data
Access comprehensive financial data with unmatched coverage and precision. Trusted by the world's leading financial institutions.
- 10M+ securities worldwide
- 100K+ daily updates
- 50-year historical data
- Comprehensive ESG metrics

Save up to 68%
vs. legacy vendors