Cathie Wood's Autonomous Tech Pick Teradyne Turns Overpriced Amid 12% YTD Rally: Value Score Sinks

Teradyne Inc. (NASDAQ:TER), a top holding in Cathie Wood‘s ARK Invest funds, has flashed a potential warning signal for value-conscious investors.

Valuation Flashes ‘Bottom 10%’ Warning

Following a nearly 12% year-to-date rally, the company’s fundamental valuation metrics have deteriorated relative to peers, with its Benzinga Edge’s value score sinking to a precarious 9.55.

The sharp decline indicates that the stock is now arguably “overpriced,” ranking in the bottom 10th percentile of stocks when compared to fundamental measures of assets, earnings, sales, and operating performance.

This low percentile suggests that while the stock price has surged, the underlying fundamental worth has not kept pace, making it expensive relative to the broader market.

Momentum Disconnect

Despite the valuation concerns, the stock’s price action remains overwhelmingly bullish. Teradyne currently holds a momentum score of 96.14, placing it in the top percentile for relative strength and volatility.

Additionally, Benzinga Edge’s Stock Rankings data confirms that the stock is in a positive upward trend across all three key timeframes: short, medium, and long-term.

This creates a distinct divergence where technical momentum is driving the price higher even as fundamental value appeal diminishes.

The ARK Invest Connection

Teradyne remains a cornerstone of Wood’s portfolio, serving as the second-largest holding in the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ) with a 9.7% weighting, and a top-five holding in the Ark Space & Defense Innovation ETF (BATS:ARKX) at 7.5%.

Both funds significantly outperformed the S&P 500 in 2025, driven by gains in sectors like AI and robotics. However, the sinking value score suggests that these gains have pushed Teradyne’s premium to historically high levels.

TER Surges Nearly 12% YTD

Teradyne has gained 11.72% in 2026 so far. Additionally, it was higher by 147.48% over the last six months and 147.48% over the past year.

On Wednesday, the stock closed 3.53% higher at $231.89 apiece; it was up 2.83% in premarket on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock