GET DAILY SIGNALSTeradyne (TER) Analyst Targets Suggest +88% Upside from Current Levels
Key Takeaways
- The central $410 target represents the arithmetic mean of roughly 16 verified analyst price targets, rounded from an average near $405.
- With Teradyne (TER) recently trading near $218, reaching $410 would require an upside of roughly 88% — a very large move.
- The published target range is unusually wide, from about $220 to $550, reflecting sharp disagreement over how much AI-driven test demand is already priced in.
- Key supports include record AI-linked memory and test revenue and a rising share of semiconductor capital spending; the main obstacle is shrinking margins and delayed hyperscaler ramps.
- The stock has fallen sharply from its June 2026 high near $488 after a Q3 earnings beat was overshadowed by lower margin guidance.
- For more on this ticker's Major News, Today's Price Move, Forecast, and Earnings, explore these dedicated pages.
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Analyst Price Targets and Consensus View
Teradyne, Inc. is a semiconductor test equipment and robotics company, not an ETF. The $410 target is an average of verified analyst price targets rather than an official consensus, and it is a target, not a forecast of what will happen. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Across roughly 16 published twelve-month targets, the low-to-high range runs from approximately $220 to $550 — an extraordinarily wide spread for a single name. The arithmetic mean sits near $405, rounded to $410 for readability. Recent post-earnings actions show analysts trimming but not abandoning bullish views: UBS analyst Timothy Arcuri cut his target to $430 from $485 while keeping a Buy rating, Goldman Sachs' James Schneider set a $440 target, and Baird lowered its target to $385 from $420 while staying Neutral.
The disagreement is not about demand direction so much as valuation. Bulls argue Teradyne is in the early stages of a multi-year, AI-driven test cycle, while cautious voices contend that a large share of that optimism was already reflected in the share price before the recent pullback.
Current Market Position and Path Toward the Target
After peaking near $488 in June 2026, Teradyne (TER) has pulled back sharply, recently trading around $218. Reaching $410 would require a rise of roughly 88%, which by any standard is a very large move and would imply a near-doubling from current levels.
The stock's decline accelerated after its October Q3 report. Revenue of $1.31 billion rose about 70% year over year and non-GAAP EPS of $2.29 beat estimates, but management guided Q4 gross margin to 57.5%–58.5%, down from 59.1%, and pushed the next major hyperscaler compute ramp toward mid-2027. The combination of flat sequential revenue and contracting margins reset expectations even as AI-driven revenue remained above 60% of total sales.
What Could Support a Move Toward the Target
The bull case rests on structural AI demand. Memory test revenue hit a record $301 million, integrated systems test reached a record $95 million, and the robotics unit turned profitable. Teradyne is also gaining share through customers' "dual-vendor" sourcing strategies, and test spending as a share of semiconductor capital expenditures has risen from about 6.4% in 2025 to roughly 8.1% in early 2026. Management points to fiscal 2026 revenue near $5.2 billion, up more than 60%, and a longer-term $6 billion revenue goal.
What Could Prevent the Target From Being Reached
The principal risks are margin compression, timing, and concentration. Gross and operating margins are declining sequentially, and guidance implies a fourth straight quarter of lower non-GAAP EPS. Hyperscaler capacity purchases have slipped into the second half of 2027, meaning the next leg of growth is back-half weighted. With AI-related revenue exceeding 60% of the total, any cooling in data-center capital spending would weigh disproportionately. Valuation also remains a live debate: even after the selloff, some analysts argue the shares discount a lot of future growth.
Technical Levels and Market Structure
Teradyne's 52-week range of roughly $152 to $488 underscores the stock's volatility. The shares now trade below their 50-day and 200-day moving averages, a sign of a weakening long-term trend. The area around $212, the recent intraday low, represents a near-term support zone, with the 52-week low near $152 well below. The former $300–$400 zone, where the stock traded before the decline, now sits far above current levels.
Time Horizon and What Investors Should Monitor
Analyst price targets typically reflect a research horizon of about twelve months, though individual firms differ. The most important upcoming items are the next earnings report and guidance, any further analyst target revisions, and confirmation of the hyperscaler ramp timeline. Investors should also watch semiconductor capital-expenditure data, gross-margin trajectory, and any broader rotation in AI-related semiconductor names.
Final Assessment
The question of whether Teradyne can reach $410 is ultimately a question about whether its AI test-cycle narrative can reassert itself after a sharp de-rating. The $410 figure, an average of analyst targets ranging from roughly $220 to $550, implies an 88% move from near $218 — substantial by any measure. Support rests on record AI-linked demand and share gains, while the obstacles are declining margins, delayed hyperscaler ramps, and lingering valuation debate. The wide target range shows analysts themselves are divided. Whether the stock closes that gap will depend on evidence that margins stabilize and the 2027 ramp materializes as described.
Leveraging AI Daily Buy/Sell Signals in My Process
In my own research, Tickeron's AI Daily Buy/Sell Signals help me monitor thousands of stocks and ETFs with AI-driven analysis. The tool generates Buy, Sell, or Hold signals based on shifting market conditions and technical behavior, allowing me to surface opportunities and track trends more efficiently without replacing my core research. For a volatile name like Teradyne, where momentum can shift quickly, these objective signals cut through the noise effectively.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for TER turns negative, indicating new downward trend
TER saw its Momentum Indicator move below the 0 level on October 12, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned negative. In 68 of the 89 cases, the stock moved further down in the following days. The odds of a decline are at 76%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for TER turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 37 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
TER moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TER crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 71%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TER declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for TER entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 19 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +4.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where TER advanced for three days, in 254 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
TER may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 28 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating steady price growth. TER’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 71 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TER’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.926) is normal, around the industry mean (5.670). P/E Ratio (29.811) is within average values for comparable stocks, (68.795). Projected Growth (PEG Ratio) (0.734) is also within normal values, averaging (0.801). Dividend Yield (0.002) settles around the average of (0.009) among similar stocks. P/S Ratio (12.077) is also within normal values, averaging (27.897).
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an electronic test systems manufacturer
Industry ElectronicProductionEquipment
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