Shares of Teradyne (TER 18.87%) jumped on Wednesday, finishing the day up 18.9%. The spike comes as the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) fell slightly.

Teradyne, an electronics testing company, released mostly better-than-expected earnings today, leading to a prominent analyst maintaining their "overweight" rating for the stock.

Teradyne beats in the second quarter (mostly)

The company's reported earnings per share (EPS) and revenue figures both slightly topped expectations. Analysts had estimated $0.54 per share on sales of $651 million. Teradyne delivered $0.57 per share on sales of $651 million. While the company surpassed expectations for the quarter, its top line fell by 11% year over year (YOY).

Looking ahead, the company expects sales for Q3 of between $710 million and $770 million, above Wall Street targets. It did miss, however, on its EPS guidance. The company set a range of between $0.69 and $0.87, well below the expected $0.89.

Image source: Getty Images.

CEO Greg Smith said he expects AI-related testing to drive growth: "As we progress through the third quarter, we are gaining confidence in AI compute-related revenue inflecting in the second half of the year."

Teradyne has room to grow

Impressed by the performance and not phased by the lower-than-expected earnings guidance, Cantor Fitzgerald analysts maintained their Overweight rating, citing AI growth prospects. I agree. I think AI-related chip testing could drive major growth over the next few years.