Teradyne's Growth in Semiconductor Testing: Teradyne's Semiconductor Test revenues increased by 7% year-over-year and 23% sequentially in Q3 2025, driven by rising demand for AI-related products and significant contributions from memory test sales, particularly DRAM and flash memory.
Competitive Landscape: Teradyne faces competition from Advantest and Cohu, both of which are expanding their semiconductor test offerings to meet the growing demand for high-performance AI-related semiconductors.
Stock Performance and Valuation: Teradyne's shares have surged 137.5% over the past six months, outperforming industry averages, but the stock is trading at a premium with a forward Price/Sales ratio of 8.68X compared to the industry average of 6.99X.
Future Outlook and AI Investment: The consensus for Teradyne's fiscal 2026 earnings suggests a 9.01% year-over-year growth, and analysts predict that the next phase of AI development will create significant investment opportunities, highlighting the potential for new companies to emerge as leaders in the sector.
Wall Street analysts forecast TER stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TER is 206.12 USD with a low forecast of 161.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast TER stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TER is 206.12 USD with a low forecast of 161.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Buy
4 Hold
1 Sell
Moderate Buy
Current: 229.140
Low
161.00
Averages
206.12
High
240.00
Current: 229.140
Low
161.00
Averages
206.12
High
240.00
TD Cowen
Buy
maintain
$600 -> $650
2026-01-22
New
Reason
TD Cowen
Price Target
$600 -> $650
AI Analysis
2026-01-22
New
maintain
Buy
Reason
TD Cowen raised the firm's price target on Teradyne to $650 from $600 and keeps a Buy rating on the shares. The company's visibility remains high with its unmanned and space businesses continuing to expand rapidly, the analyst tells investors in a research note. It believes Teradyne's short cycle guidance is conservative to start the year.
BofA
Vivek Arya
Buy
maintain
$250 -> $260
2026-01-22
New
Reason
BofA
Vivek Arya
Price Target
$250 -> $260
2026-01-22
New
maintain
Buy
Reason
BofA analyst Vivek Arya raised the firm's price target on Teradyne to $260 from $250 and keeps a Buy rating on the shares. Capex can rise faster than underlying unit growth as AI compute/networking and memory chips become more complex and process cadence accelerates, the analyst tells investors.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for TER
Unlock Now
Vertical Research
Robert Jamieson
Buy
to
Hold
downgrade
$200 -> $220
2026-01-09
Reason
Vertical Research
Robert Jamieson
Price Target
$200 -> $220
2026-01-09
downgrade
Buy
to
Hold
Reason
Vertical Research analyst Robert Jamieson downgraded Teradyne to Hold from Buy with a price target of $220, up from $200.
Cantor Fitzgerald
Overweight
initiated
$12
2025-12-19
Reason
Cantor Fitzgerald
Price Target
$12
2025-12-19
initiated
Overweight
Reason
Cantor Fitzgerald initiated coverage of Terrestrial Energy with an Overweight rating and $12 price target. Terrestrial is in a "unique position" to accelerate commercialization progress given the Department of Energy's plans to fast-track advanced nuclear programs, the analyst tells investors in a research note. The firm believes the company having both reactor and fuel technology offers a good business model and helps position it favorably with regulators. Terrestrial "achieved notable success" with the Department of Energy's Advanced Reactor Pilot Program and Fuel Line Pilot Program, says Cantor.
About TER
Teradyne, Inc. is a global supplier of automated test equipment and robotics solutions. It designs, develops, manufactures and sells automated test systems and robotics products. Its segment includes Semiconductor Test, Robotics, and Product Test. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services, inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Its offerings also include defense/aerospace test instrumentation and systems, circuit-board test and inspection (production board test) systems, and wireless test systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
