high - Semiconductor capex is highly pro-cyclical, amplifying GDP growth/contraction. Test equipment orders lead chip demand by 6-12 months. In downturns, customers defer capex aggressively; in upcycles, capacity constraints drive urgent orders. Industrial automation (Universal Robots) has moderate cyclicality tied to manufacturing activity and labor cost pressures.

Moderate sensitivity through two channels: (1) Customer capex decisions - semiconductor fabs and fabless companies evaluate ROI hurdles that rise with rates, potentially delaying equipment purchases; (2) Valuation multiple compression - as a high-multiple growth stock (15.7x P/S), Teradyne's valuation is sensitive to discount rate changes. However, strong balance sheet (0.12 D/E) means minimal direct financing cost impact.

momentum/growth - Stock exhibits high beta (typically 1.3-1.5x) and trades on semiconductor cycle momentum. Recent 178.9% 1-year return reflects AI-driven semiconductor capex surge. Attracts growth investors during upcycles and momentum traders. Not suitable for income investors (dividend yield typically 1-2%). Value investors may find entry points during severe downcycles when P/E compresses to 10-15x trough earnings.