Stifel Sees Upside for Teradyne (TER) from AI and Semi Test Share Gains

Teradyne, Inc. (NASDAQ:TER) is one of the 10 AI Stocks to Keep on Your Radar. On February 4, Stifel analyst Brian Chin raised the price target on the stock to $325.00 (from $280.00) while maintaining a Buy rating. The firm believes TER’s outlook appears more constructive with upside from AI and semi test share gains.

Stifel’s price target increase follows TER’s upside guidance that demonstrate how artificial intelligence applications now represent more than 70% of the company’s semiconductor test business as of the first quarter.

Management anticipates 2026 revenue to be weighted towards the first-half, though analysts see a 60/40 split between the first and second halves a reflection of conservative around quarterly AI revenue variability and broader pickup in areas like mobile NVIDIA GPU qualification.

Incremental contributions are anticipated in the second half of 2026 with “with interim 30% (or higher) share potential in few years’ time.”

The firm further added that Teradyne has updated its mid-term target model based on the semiconductor test total addressable market (TAM).

Teradyne now pegs its mid-term target model to the semi-test TAM; given a $13B test TAM, TER targets $10.25 EPS (+/-75c) on $6B revenue Reflecting Teradyne’s re-invigorated growth outlook, we reiterate our Buy rating and raise our target price to $325, 38x our CY27E EPS (10% discount to peer).

Teradyne, Inc. (NASDAQ:TER) designs, develops, and manufactures automated test equipment (ATE) and advanced robotics systems for the manufacturing and electronics industries.

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.