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Teradyne (NasdaqGS:TER) and MultiLane have agreed to form a joint venture focused on high speed test solutions for AI data centers.
The new entity will combine Teradyne’s test platform reach with MultiLane’s expertise in high speed input output and interconnect testing.
The joint venture is aimed at serving growing demand for reliable testing of high bandwidth connections used in AI infrastructure.
Teradyne is best known for automated test equipment used in semiconductors and electronics, and this move extends that role into AI focused data center infrastructure. As AI applications require more bandwidth and faster links between chips, servers and storage, reliable testing of these connections becomes a bigger part of the hardware stack. For investors, this joint venture adds another angle to Teradyne’s exposure to data center spending beyond its existing test platforms.
Looking ahead, the key question is how effectively the joint venture can translate technical capability into design wins with chipmakers, system vendors and cloud operators. The degree to which the partnership gains traction with major AI and data center customers could influence how you view Teradyne’s position within the broader test equipment market and its links to AI infrastructure demand.
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NasdaqGS:TER Earnings & Revenue Growth as at Feb 2026
How Teradyne stacks up against its biggest competitors
The joint venture comes at a time when Teradyne’s core semiconductor test business is tightly linked to AI demand, with Q4 2025 sales of US$1,083.34 million and over 60% of revenue tied to AI applications. By pairing its global test footprint with MultiLane’s high speed input output expertise, Teradyne is trying to deepen its role in AI data center hardware alongside peers such as Advantest, Keysight Technologies and National Instruments. This is particularly relevant in one of the hardest parts of the stack to validate: very high bandwidth links between chips and systems.
The MultiLane deal aligns with the existing narrative that Teradyne is focusing on AI, robotics and semiconductor automation as long-term growth engines. It sits alongside moves such as the Quantifi Photonics acquisition and new AI focused test platforms. Taken together, these steps point to a broader push to cover more of the AI hardware chain, from device level semiconductor test through to system level and high speed optical or electrical connections.
🎁 The joint venture could deepen Teradyne’s exposure to AI data center spend by expanding its offering into high speed connection testing, an area closely tied to current AI workloads.
🎁 Majority ownership gives Teradyne greater influence over product direction and integration with its existing test platforms, which may support cross selling opportunities.
⚠️ The transaction is subject to customary closing conditions, so there is execution risk around getting MLTP operational and aligned with Teradyne’s product roadmap.
⚠️ Investors also need to watch competitive responses from other test vendors that serve AI data centers, which could limit pricing power in this niche.
From here, key factors to track include whether MLTP wins sockets with leading AI chip and cloud providers, how quickly its solutions are adopted in new AI data centers and how management describes the contribution alongside guidance for 2026. For additional context on how this move fits into the broader AI and robotics story, you can explore community narratives in our Teradyne deep-dive.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TER.
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