Teradyne Stock: Where’s the Robotics Exposure?

Regular readers have probably been following our recent quest to find the best semiconductor stock. We’ve dropped down quite the rabbit hole trying to identify a company in the mold of NVIDIA (NVDA). Its graphic processing units (GPUs) have helped it take a dominating position in multiple industries and sectors related to computing, including AI chips, data centers, gaming and the metaverse, and (at least at one point) crypto mining. But not every investment play has to be a pure play. Sometimes the best option is to go with the pick-and-shovel play. Or both.

We originally went long on Teradyne (TER), which automates testing for semiconductors and an array of other electronic and digital gizmos, because it was going long on industrial automation by acquiring four robotics companies in the span of four years. Our thesis was that Teradyne would eventually offer significant exposure to the robotics theme. Unfortunately, it’s not happening as quickly as we’d like. While we continue to wait, we’ve been distracted by the fact that the Baawston-area company is also a pick-and-shovel play on AI and automation. It is a major service provider to