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Teradyne Unveils New Module for Magnum VU, Enhances Portfolio

Zacks Equity Research

Teradyne, Inc. TER is firing on all cylinders to expand presence in the automated test solutions market on the back of its robust product portfolio.

The company recently unveiled, Universal Protocol Board (UPBx), which is a module for its Magnum VU memory test system.

Notably, Magnum VU is a superset test platform that aids in testing the performance of NAND products and legacy ones including UFS 2.1, PCIe Gen 3, e.MMC, ONFI and Toggle.

Further, it helps in testing of high-speed memory devices such as UFS 3.0 and PCIe Gen 4 mobile, tablets and automotive devices.

With UPBx, Magnum VU becomes the industry’s highest throughput NAND Protocol test platform. Teradyne’s latest move expands memory test capabilities, consequently enhancing key offerings which in turn will drive the top line.

Notably, shares of Teradyne have returned 12.9% over a year, outperformed the industry’s rally of 5.6%.



 

Growth Opportunities

In today’s world, growing proliferation of augmented reality/virtual reality (AR/VR) applications and high-resolution videos especially in the areas of gaming and multimedia, is strengthening the demand for higher speed NAND storage based on the Universal Flash Storage 3.0.

The company’s latest launch helps in eliminating the traditional cabling between the test instrument and device under test.

We believe Teradyne is well poised to reap benefits from the booming automation testing market which as per a report from MarketsandMarkets, is expected to reach $19.27 billion by 2023 at a CAGR of 17.7% between 2018 and 2023.

Further, the company with its strong product and solutions lineup is well-positioned to rapidly penetrate the global automated test equipment market. A report from Mordor Intelligence shows that this market is likely to hit $4.51 billion by 2023 at a CAGR of 3.28% over a period of 2018-2023.

Teradyne, Inc. Revenue (TTM)

Teradyne, Inc. Revenue (TTM)

Teradyne, Inc. revenue-ttm | Teradyne, Inc. Quote

Bottom Line

Teradyne continues to benefit from growing memory market exposure and rising demand for System Test.

We believe rising utilization of automatic test systems in motion control devices and testing products particularly in the aerospace, automation, medical and military end-markets across the world remains a major positive.

Consequently, strengthening product portfolio, Universal Robots acquisition and continuous design wins are likely to continue aiding Teradyne’s performance in the near and long term.

Zacks Rank & Other Stocks to Consider

Currently, Teradyne sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks that can be considered in the broader technology sector are Gain Corporation EGAN, Cirrus Logic, Inc. CRUS and Cadence Design Systems CDNS. All the three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for eGain, Cirrus Logic and Cadence Design Systems is currently pegged at 30%, 15% and 11%, respectively.

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