Shares of Teradyne (TER), a leading provider of automated test equipment, surged 5.51% in pre-market trading on Wednesday following the release of its better-than-expected second-quarter earnings report. The company's strong performance and optimistic outlook for AI-driven growth have bolstered investor confidence.

Teradyne reported adjusted earnings per share of $0.57 for Q2 2025, surpassing the analyst consensus estimate of $0.54. Revenue came in at $651.8 million, also beating expectations of $649.9 million. The company's Semiconductor Test Group was cited as a key driver of the strong results, with System-on-a-Chip testing for AI applications emerging as the strongest growth driver.

Looking ahead, Teradyne provided an upbeat outlook for the third quarter and the second half of 2025. The company forecasts Q3 revenue between $710 million and $770 million, with adjusted EPS projected to be in the range of $0.69 to $0.87. CEO Greg Smith expressed confidence in the company's future performance, stating, "We believe that AI will drive strong second half performance for Teradyne." This positive guidance, coupled with the company's strong position in the booming AI chip testing market, has likely contributed to the significant stock price increase in pre-market trading.