Teradyne Inc. (TER) and Advanced Micro Devices (AMD) are positioned as key players in the AI component supply chain within the semiconductor market. The global semiconductor market was valued at $681.05 billion in 2024 and is projected to reach $2,062.59 billion by 2032, growing at a compound annual growth rate (CAGR) of 15.4% from $755.28 billion in 2025.
For Teradyne, third-quarter revenues from semiconductor testing increased by 7% year-over-year and 23% sequentially, fueled by strong demand for AI technologies. This segment accounted for 78.8% of total sales in the quarter. Meanwhile, AMD’s data center AI segment is expanding rapidly, driven by the introduction of the Instinct MI350 Series GPUs and upcoming products in 2026. The company has secured a multiyear agreement with OpenAI to deploy 6 gigawatts of GPUs starting with MI450 Series accelerators, expected to produce over $100 billion in revenues in the coming years.
Both companies have seen significant stock performance, with TER shares up 123.4% and AMD shares up 64.7% over the past six months. However, both stocks are currently considered overvalued, with TER trading at a forward Price/Sales ratio of 8.26x and AMD at 8.12x.
