Sifting through countless of stocks in the Semiconductors & Semiconductor Equipment industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Tower Semiconductor Ltd., Teradyne or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Tower Semiconductor Ltd., Teradyne and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Tower Semiconductor Ltd., Teradyne and Inc.

Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States, Japan, rest of Asia, and Europe. The company provides customizable process technologies, including SiGe, SiPho, mixed signal CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, and integrated power management. It also offers a design enablement platform for a design cycle, as well as transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves various markets, such as consumer applications, personal computers, communications, handsets and smartphones, automotive, industrial, aerospace, and medical devices. Tower Semiconductor Ltd. was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.

Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. It operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. It also provides semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage and system level test systems, wireless test systems and robotics products, and circuit-board test and inspection systems; production board test; and wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

Latest Semiconductors & Semiconductor Equipment and Tower Semiconductor Ltd., Teradyne, Inc. Stock News

As of November 26, 2025, Tower Semiconductor Ltd. had a $11.6 billion market capitalization, compared to the Semiconductors & Semiconductor Equipment median of $2.5 million. Tower Semiconductor Ltd.’s stock is up 100.9% in 2025, up 5% in the previous five trading days and up 116.31% in the past year.

Currently, Tower Semiconductor Ltd.’s price-earnings ratio is 55.9. Tower Semiconductor Ltd.’s trailing 12-month revenue is $1.4 billion with a 12.9% net profit margin. Year-over-year quarterly sales growth most recently was -4.0%. Analysts expect adjusted earnings to reach $2.178 per share for the current fiscal year. Tower Semiconductor Ltd. does not currently pay a dividend.

As of November 26, 2025, Teradyne, Inc. had a $28.1 billion market cap, putting it in the 90th percentile of all stocks. Teradyne, Inc.’s stock is up 42.5% in 2025, up 6.6% in the previous five trading days and up 65.77% in the past year.

Currently, Teradyne, Inc.’s price-earnings ratio is 65.1. Teradyne, Inc.’s trailing 12-month revenue is $2.9 billion with a 15.5% net profit margin. Year-over-year quarterly sales growth most recently was 4.3%. Analysts expect adjusted earnings to reach $3.533 per share for the current fiscal year. Teradyne, Inc. currently has a 0.3% dividend yield.

How We Compare Tower Semiconductor Ltd., Teradyne and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Tower Semiconductor Ltd., Teradyne and Inc.’s stock grades to see how they measure up against one another.

Learn more about A+ Investor here!

Sign Up to Receive a Free Special Report Showing How A+ Grades Can Help You Make Smarter Investment Decisions

Tower Semiconductor Ltd., Teradyne and Inc. Growth Grades

Company	Ticker	Growth
Tower Semiconductor Ltd.	TSEM	B
Teradyne, Inc.	TER	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Tower Semiconductor Ltd. has a Growth Score of 75, which is Strong. Teradyne, Inc. has a Growth Score of 81, which is Very Strong.

The Growth Grade Winner: Teradyne, Inc.

As you can clearly see from the Growth Grade breakdown above, Teradyne, Inc. has a more attractive growth grade than Tower Semiconductor Ltd.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Teradyne, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Tower Semiconductor Ltd., Teradyne and Inc.’s Momentum Grades

Company	Ticker	Momentum
Tower Semiconductor Ltd.	TSEM	A
Teradyne, Inc.	TER	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Tower Semiconductor Ltd. has a Momentum Score of 95, which is Very Strong. Teradyne, Inc. has a Momentum Score of 91, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Tower Semiconductor Ltd., Teradyne and Inc. have a grade of A. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Tower Semiconductor Ltd., Teradyne and Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Tower Semiconductor Ltd.	TSEM	C
Teradyne, Inc.	TER	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Tower Semiconductor Ltd. has a Earnings Estimate Score of 55, which is Neutral. Teradyne, Inc. has a Earnings Estimate Score of 72, which is Positive.

The Earnings Estimate Revisions Grade Winner: Teradyne, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Teradyne, Inc. has a better Earnings Estimate Revisions Grade than Tower Semiconductor Ltd.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Teradyne, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Tower Semiconductor Ltd., Teradyne and Inc. Grades

In addition to Estimate Revisions, Momentum and Growth, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Tower Semiconductor Ltd., Teradyne and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Tower Semiconductor Ltd., Teradyne or Inc. Stock?

Overall, Tower Semiconductor Ltd. stock has a Growth Score of 75, Momentum Score of 95 and Estimate Revisions Score of 55.

Teradyne, Inc. stock has a Growth Score of 81, Momentum Score of 91 and Estimate Revisions Score of 72.

Comparing Tower Semiconductor Ltd., Teradyne and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.