Teradyne at Goldman Sachs Communacopia + Technology Conference: ai push widens

On September 9, 2026, Teradyne CEO Greg Smith presented a comprehensive strategy for the company at the Goldman Sachs Communacopia + Technology Conference 2026. The strategy centers around the AI build-out, spanning from wafer testing to data center systems. Smith acknowledged strong momentum across several businesses, but warned of potential competition and growth fluctuations.

All three main businesses - semiconductor test, robotics, and product test - are tied to AI spending, with each benefiting from various aspects of the value chain. Teradyne's semiconductor industry is entering a long expansion cycle, driven by hyperscaler demand, advanced packaging, and higher test intensity. The company reported gross margins between 59% and 61%, with operational expenses growing at less than half the revenue growth rate, creating operating leverage.

The company identified gains in compute, custom silicon, memory, robotics, and system-level test, with further upside expected in 2027 and beyond. Smith highlighted physical AI, including robotics and autonomous systems, as a potential major growth driver in the next few years. Teradyne's business mix offers exposure to AI throughout the semiconductor and systems chain, from wafer-level testing to data center operations.

The company's revenue surged 58% year-over-year to $4.5 billion, aligning closely with the stated gross profit margin range. Smith pointed to a broader shift in semiconductor spending, with CapEx projected to rise from $120 billion in 2025 to $250 billion to $300 billion in the 2028 to 2030 period. Test equipment's share of total semiconductor CapEx increased from 4% in 2023 to 8% in the first five months of 2026, reflecting higher test intensity across the industry.