Technology stocks’ upcoming results are anticipated to reflect the benefits of the growing demand for AI and the Generative AI (GenAI) technology. Rising demand for GenAI chips to run Large Language Models (LLMs) is expected to continue benefiting electronics companies this earnings season.
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Electronic stocks are evolving on digital transformation and the growing demand for silicon across multiple markets. Technology transitions are driving product complexities, which are raising the demand for solutions provided by electronics solutions providers.
Increasing demand for data centers, driven by the need for increasing cloud capacity to support AI-related workloads, is anticipated to have acted as a tailwind for electronic stocks this earnings season.
Rising demand for AI-enabled PCs and improving memory spending, especially in NAND and DRAM, are likely to have aided the industry players’ performances this earnings season.
Let us see how the following electronics stocks are poised ahead of their quarterly results on Jan. 29.
Teradyne’s TER fourth-quarter 2024 earnings are likely to have benefited from strong AI-driven demand in semiconductor testing and growth in the robotics segment. The Total Addressable Market for memory tests is expected to have risen, led by higher demand for HBM (High Bandwidth Memory).
Teradyne’s OEM solutions for Universal Robots are expected to report more than 50% year-over-year growth, driven by expanding partnerships. The increased use of cobots in AI-based logistics is likely to have boosted Robotics revenues in the fourth quarter of 2024.
However, excess inventory is expected to have negatively impacted semiconductor growth and posed a significant challenge for the company.
Teradyne has an Earnings ESP of 0.00% and sports a Zacks Rank #1 (Strong Buy) at present, reducing the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1, 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Teradyne, Inc. price-eps-surprise | Teradyne, Inc. Quote
Lam Research LRCX has an Earnings ESP of 0.00% and a Zacks Rank #4 at present.
Weakness in the WFE market, rising costs and geopolitical risks are expected to have created challenges for Lam Research in second-quarter fiscal 2025.
However, LRCX is likely to have benefited from strong demand for memory and AI applications, especially GenAI.
Increased DRAM spending, fueled by demand for HBM, is anticipated to have boosted the company’s performance. Lam Research’s strength in 3D DRAM and advanced packaging, along with rising NAND spending due to technological advancements, is expected to have supported its earnings results in the to-be-reported quarter.
