BofA Updates Semiconductor PTs, Framing 2026 as the Midpoint of the Decade-Long AI Infrastructure Shift

Teradyne Inc. (NASDAQ:TER) is one of the hot tech stocks to invest in. On December 16, Bank of America raised the firm’s price target on Teradyne to $235 from $205 with a Buy rating on the shares. This sentiment came out as BofA broadly updated its price targets for the US semiconductor stocks, framing 2026 as the halfway point of a decade-long transition to AI-driven infrastructure. The firm noted that while stock performance may be volatile, this uncertainty should be balanced by the rise of AI factories and the rapid development of next-gen LLMs.

On the same day, Cantor Fitzgerald raised the firm’s price target on Teradyne Inc. (NASDAQ:TER) to $240 from $200 and kept an Overweight rating on the shares. After outperforming the S&P 500 by approximately 30 points in 2025, the semiconductor index/SOX is expected to continue leading the market higher into 2026. Cantor Fitzgerald noted that while cyclical trends may send mixed signals, the massive growth in AI infrastructure spending is driving sustained demand for computing, networking, memory, and equipment. Consequently, the firm recommended a long position in the SOX and an overweight allocation to AI-focused stocks to capitalize on this expanding tech cycle.

Teradyne Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products in the US, Asia Pacific, Europe, the Middle East, and Africa. It operates through Semiconductor Test, Robotics, and Other segments.

While we acknowledge the potential of TER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.