Cathie Wood owns a $239 million stake in this dividend stock

Cathie Wood doesn't typically pursuit dividend stocks, but Teradyne (TER) represents thing different.

The chip-testing elephantine pays a humble quarterly dividend portion sitting astatine the intersection of AI infrastructure buildout and semiconductor innovation.

That operation has made it 1 of ARK Invest's larger positions, with Wood's steadfast holding 1.031 cardinal shares worthy astir $239 million.

For context, Teradyne trades adjacent $232 per share and carries a marketplace headdress of astir $36 billion. The tech banal has climbed by much than 75% implicit the past twelvemonth arsenic AI-driven semiconductor request accelerated faster than astir analysts expected.

Teradyne makes the instrumentality that tests semiconductors earlier they vessel to customers. Historically, mobile processors drove astir of the company's revenue.

However, successful Q3 of 2025, AI-related investigating accounted for 50% of Teradyne's full revenue. By the 4th quarter, that fig jumped to 60%.

CEO Greg Smith said the displacement happened faster than anyone anticipated. Smith explained:

The numbers backmost that up:

• Teradyne posted third-quarter gross of $769 cardinal and expects fourth-quarter income betwixt $920 cardinal and $1 billion.

• That's a sequential leap of astir 20% driven astir wholly by AI accelerator chips, high-bandwidth memory, and networking instrumentality headed into information centers.

Smith broke down the accidental crossed 3 main categories: compute processors, representation chips, and networking gear. All 3 are expanding rapidly arsenic hyperscalers contention to physique retired AI infrastructure.

Teradyne's UltraFLEXplus investigating strategy has go captious for AI spot makers. The level handles analyzable processors with demanding powerfulness requirements and monolithic pin counts.

As AI chips get bigger and much sophisticated, trial times increase, and yields go harder to manage.

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That creates an accidental for Teradyne. The institution is moving to suffice its instrumentality with a large GPU manufacturer, a process that typically takes astir six months. Smith said they're successful the last signifier of that qualification and expect to succeed.

Even a tiny stock of that concern would beryllium meaningful.

• The GPU lawsuit represents astir $2 cardinal of the $6.5 cardinal semiconductor trial marketplace this year.

• Capturing 25% of that by 2027 would adhd important revenue, though Smith cautioned the ramp volition beryllium gradual.