Teradyne is up 177% from its low and 45% YTD, with a P/E of 63 — far above the peer average of 42, reflecting AI-driven investor enthusiasm.

Short interest stands at 5.5%, double the sector average, with a squeeze score above 70 and a confirmed short squeeze event in September.

Realized volatility hit 90 with a sharp earnings move; implied remains high at 55, suggesting continued risk and potential for outsized swings.

Teradyne operates in an AI-adjacent sector. Teradyne designs, manufactures, sells, and supports semiconductor test equipment and services globally.

The stock is up 45% year-to-date and 177% from its recent low. Peers in the semiconductor testing space are also up 45% YTD, with an average rebound of 100% from their low.

TER’s P/E is at a five-year high at 63, higher than the peer average of 42.

It’s the AI-adjacent nature that makes it the second-best performer since its low and has the highest P/E. In other words, it has been trading recently more like an AI stock.

Like other AI stocks, TER’s short interest as a percentage of float is elevated at 5.5% — double the sector average and twice its prior level when the stock was higher.

The stock and short interest are moving together, forming a reversal pattern that signals short squeeze risk.

TER is the only stock in its category with a squeeze score above 70, based on recent performance. It already experienced a short squeeze in September.

For example, TER has posted gains for six consecutive months, including a 32% surge last month.

Reflecting the 5.5% short interest, there is notable skepticism — 22% of analysts have a sell rating, and the stock is currently trading near its target price.

Realized volatility has climbed, reaching nearly 90 recently, including a 20% increase on earnings on October 28 — double the average move. The market has priced in this volatility, with implied volatility at 55, still well above the August low of 35.

Active long interest in TER has increased by 15% this year, rising from 23.3% to 26.8%, while hedge fund ownership is up 33%.

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