Teradyne Stock Surges as Vulcan Robots Limbs Link to Amazons Automation Leap

Amazon (AMZN) announced in May its latest advancement in automation technology: the Vulcan robot, which is “changing the way we operate.” Recently, shares of Teradyne (TER), a key supplier for the Vulcan robot, surged following a report revealing Teradyne’s role in providing one of the robot’s critical features—its limbs.

Hunterbrook, a hedge fund and newsroom, along with thematic equity investor Citrini Research, published a report indicating that the limbs of the Vulcan robot are manufactured by Universal Robots, a robotics firm acquired by Teradyne in 2015 for $285 million. Following the report, Teradyne’s stock rose by 6.3%.

Hunterbrook described Teradyne as a “pick-and-shovel” play in the AI and robotics sectors and disclosed a long position on the stock. Teradyne, which produces testing equipment for chips used in various electronics, experienced a significant stock price increase during the pandemic, peaking at over $160 in 2021. The stock has since been volatile, falling by as much as 50% from its peak but nearly reclaiming its record high a year ago. Shares settled at $97.05 on Friday, partially reversing Thursday’s gains.

CEO Greg Smith mentioned on the company’s first-quarter earnings call that Teradyne’s robotics division is navigating a “very challenging macro backdrop” but recently received the largest order in its history from a global automotive manufacturer. Smith also noted that customers are delaying order deliveries due to uncertainty around the Trump administration’s tariff regime.

In its report, Hunterbrook highlighted that UBS analysts previously confirmed that Vulcan could be the first tangible result of Teradyne’s strategy to engage more directly with large OEMs, which has already attracted interest from additional customers and could mark a turning point for Teradyne’s industrial automation business.

Thursday’s report from Hunterbrook is the first to explicitly link Amazon to Teradyne. Teradyne declined to comment, and Amazon did not respond to requests for comment. Amazon has promoted the Vulcan robot as a significant advancement in developing robots with a “sense of touch,” which the company believes will revolutionize item handling in its fulfillment centers.

Smith told analysts and investors during Teradyne’s Q1 earnings call that one of the company’s biggest growth areas is expected to be advanced robotics. “We would want to significantly outgrow traditional industrial automation peers in this space, mainly because we’re addressing an underpenetrated market, the advanced robotics segment, and especially the segment of robotics where people are trying to automate processes that need to be in the presence of people or interoperating with people.”