Teradyne’s fair value estimate has been nudged higher from $184.69 to $192.38 per share as analysts recalibrate models to reflect stronger AI driven test demand and improving Industrial Automation trends through 2026 and beyond. Underlying assumptions now bake in slightly faster revenue growth of 17.01%, supported by rising confidence in multi year orders from leading foundries and OSAT partners. Investors can monitor these evolving expectations to better understand how the Teradyne narrative may shift over time.
Analyst Price Targets don’t always capture the full story. Head over to our Company Report to find new ways to value Teradyne.
🐂 Bullish Takeaways
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Multiple firms, including BofA, Susquehanna, Evercore ISI, Northland and Baird, have raised price targets into the $175–$205 range, signaling rising conviction that Teradyne’s current valuation still leaves room for upside as AI driven test demand and Industrial Automation scale.
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BofA analyst Vivek Arya double upgraded the stock to Buy from Underperform and lifted the price target to $205 from $145, citing a potential multi year acceleration as TSMC ramps new process nodes, AI compute and memory testing becomes more complex, smartphone demand recovers around 2nm products and the robotics business benefits from Amazon warehouse upgrades.
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Susquehanna’s Mehdi Hosseini raised the target to $200 from $133, pointing to meaningful traction at TSMC in GPU wafer sort testing and expected SoC tester orders that extend into 2026, which supports the view that Teradyne is well positioned in a structurally growing AI compute supply chain.
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Evercore ISI and Northland both highlight upside risk to consensus, with Evercore ISI seeing test revenue growth and Industrial Automation trends setting up potential upside through 2026, while Northland expects calendar year 2026 EPS estimates to prove too low and expands its valuation multiple on the back of rising AI accelerator and HBM test demand.
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Baird’s Richard Eastman raised his target to $195 from $125 and maintained an Outperform rating after Q3 results, noting that AI drivers are increasingly permeating semiconductor testing and appear to be inflecting higher into Q4, reinforcing the narrative of improving execution and growth momentum that underpins richer valuation frameworks.
🐻 Bearish Takeaways
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Despite turning more constructive, BofA previously maintained an Underperform rating when lifting its target to $145 from $110, flagging that while optimism on AI computing and DRAM fab investment is warranted, expectations for 2026 wafer fab equipment demand already look high relative to its more cautious outlook.
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Some of the raised targets, particularly from BofA and Northland, are accompanied by references to expanding multiples or elevated 2026 expectations rather than immediate estimate hikes, implying that a meaningful portion of the anticipated AI and automation upside may already be embedded in Teradyne’s valuation and could magnify sensitivity to any execution hiccups or cycle delays.
Story Continues
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NasdaqGS:TER 1-Year Stock Price Chart
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Teradyne Robotics plans to open a new U.S. Operations Hub in Wixom, Michigan in 2026, expanding cobot manufacturing capacity, adding potential AMR production, and creating more than 200 jobs to meet rising North American automation demand.
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The company completed its January 26, 2023 share repurchase program, buying back 10,780,000 shares, or 6.81% of shares outstanding, for a total of $1.12B, including $246M in the most recent tranche.
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Management issued fourth quarter 2025 guidance, calling for revenue of $920M to $1.0B and GAAP diluted EPS of $1.12 to $1.39, reflecting the company’s outlook for test and industrial automation markets.
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Teradyne unveiled new test platforms, including the ETS-800 D20 for power semiconductors, the Titan HP system level test platform for AI and cloud devices, and the UltraPHY 224G solution targeting next generation high speed PHY testing in data center and silicon photonics applications.
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The Fair Value Estimate has risen slightly from $184.69 to $192.38 per share, reflecting modestly higher long term earnings expectations.
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The Discount Rate has edged down marginally from 10.45% to 10.43%, implying a slightly lower assumed cost of capital.
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Revenue Growth has increased slightly in the model from 16.94% to 17.01%, indicating a small uplift in projected top line expansion.
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The Net Profit Margin has improved marginally from 24.07% to 24.12%, signaling a modest enhancement in long term profitability assumptions.
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The future P/E multiple has risen slightly from 32.10x to 33.29x, suggesting a higher expected valuation level on forward earnings.
Narratives turn cold numbers into a living story, connecting what a company does, why it matters, and what that might mean for its future revenue, earnings and margins. On Simply Wall St, within the Community page used by millions of investors, a Narrative links Teradyne’s business drivers to a financial forecast and fair value. This helps you compare Fair Value to today’s Price and decide when to buy or sell, while automatically updating as news, earnings and estimates change.
Head over to the Simply Wall St Community and follow the Narrative on Teradyne to stay on top of:
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How AI accelerator and HBM test demand could affect revenue growth, margins and Teradyne’s implied fair value.
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What the Quantifi Photonics acquisition, new test platforms and robotics strategy might mean for earnings through 2027.
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Whether tariffs, trade policy and robotics softness could limit upside, even as analysts lift targets toward $190 and beyond.
Read the full Teradyne Narrative here: Analysts Lift Teradyne Targets on AI Demand and Product Wins Amid Cautious Optimism.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TER.
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