Goldman Sachs: AI Superstars in the Spotlight – The Role of Teradyne

The current year showcases an impressive rally of U.S. technology stocks, driven by the growing potential of generative Artificial Intelligence (AI). Goldman Sachs determined that this is not a financial bubble, but rather sustainable returns for investors. This trend is also observed among smaller technology companies and even in non-technology sectors. However, Peter Oppenheimer, the bank's global equity strategist, advises diversification to minimize risks. Technology stocks have become more dominant in recent years. Since 2010, they have contributed 32% of global and 40% of U.S. stock returns. This considerable performance increase has been primarily driven in recent years by technology giants, especially in the software and cloud computing sectors. In light of AI enthusiasm, this trend continues. Oppenheimer draws parallels to the past: new technologies, such as the construction of canals or the introduction of the telephone, always attracted capital and competition, followed by inevitable price declines and consolidations. The emergence of new competitors is also noteworthy, as the number of AI patents rose to over 60,000 in 2022. This indicates that AI also follows this historical growth dynamic. An interesting detail: the pioneers of a technology are not always the ones who derive the greatest long-term benefits, as the example of the internet boom shows. The possibility remains that new companies could challenge the current AI giants. Among the list of 35 AI superstars monitored by the big bank is Teradyne, which designs, develops, and distributes automated test systems and robotics products worldwide. The company has reduced its dependency on the Chinese market due to U.S. export controls and forecasts an earnings of $0.78 per share for the third quarter. This would be a slight decline compared to the previous year, but analysts' expectations have been consistently exceeded over the last four quarters.