Teradyne is a stock with broad, current analyst coverage, so the central target is derived from individual price targets rather than any single firm's view. A review of 11 recent, identifiable targets — from firms including Susquehanna ($550), Cantor Fitzgerald ($550), BofA Securities ($525), UBS ($500), Goldman Sachs and J.P. Morgan (each $465), Evercore ISI and Baird (each $420), Citi ($400), Morgan Stanley ($397) and Stifel ($390) — produces a low-to-high range of roughly $390 to $550 and an arithmetic mean of about $462, rounded to a central target of $460.
Views differ sharply. The most bullish analysts argue that AI-driven demand for semiconductor automated test equipment (ATE) justifies premium valuations, with the highest targets near $550. More cautious voices, including Morgan Stanley's Equal-Weight stance and Baird's August downgrade to Neutral on valuation grounds, see much of the upside as already priced in. The wide range is a reminder that a mean is a midpoint of opinion, not a forecast guarantee.
Teradyne closed at $400.91 on September 30, 2026, giving it a market capitalization near $62.7 billion. Reaching $460 would require a rise of about 15% — a modest move by the standards of a stock that has climbed more than 100% year to date. Notably, the shares already traded above $460 in mid-2026, peaking near $488 before a summer pullback.
The fundamental path runs through Teradyne's core semiconductor-test business. AI-related applications drove more than 60% of fourth-quarter 2025 revenue and were expected to reach up to 70% in early 2026. Management has laid out a target earnings model of roughly $6 billion in revenue with non-GAAP EPS (earnings per share) of $9.50 to $11, versus $3.96 in 2025 — a framework that, if achieved, could support a substantially higher valuation than today's.
Demand is the central pillar. AI data-center buildouts are expanding the system-on-chip (SoC) and high-bandwidth memory (HBM) test markets that Teradyne leads. Fourth-quarter 2025 revenue rose 44% year over year, memory test hit a record, and compute-related test revenue grew roughly 90% for the full year. Analyst revisions have skewed upward, with multiple firms lifting targets and J.P. Morgan upgrading the stock to Overweight. The company's addition to the NASDAQ-100 and a diversified product portfolio spanning semiconductor test, robotics, and product test provide additional support.
Valuation is the clearest obstacle. The stock trades near 55 times trailing earnings and roughly 41 times forward earnings, leaving little room for disappointment. Baird explicitly cited valuation in its August downgrade. Management has also cautioned that the current surge may be followed by a period of digestion, and visibility into the second half remains limited given the lumpiness of AI-related orders. Customer concentration in compute and memory testing, competitive pressure, and any slowdown in hyperscaler capital spending could all compress the multiple.
The 52-week range of $131.75 to $487.91 frames the setup. The record high near $488, set in late June 2026, stands as the most durable resistance zone above the current price, meaning the $460 target would require retaking ground the stock has already ceded. September pullback lows near $370 to $390 form a nearby support band, and the round-number $400 level has acted as a short-term pivot. A decisive move above the prior high would be the clearest sign the broader uptrend has resumed.
Analyst price targets typically reflect a roughly 12-month research horizon, though individual firms apply different assumptions about the AI cycle's duration. The next key event is the quarterly earnings report, expected around October 27, 2026, where guidance on second-half orders and any update to the revenue and EPS framework will matter most. Investors should also track analyst target revisions, memory and SoC test demand trends, hyperscaler AI capital-expenditure plans, and any shift in valuation multiples.
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Can Teradyne reach $460? The target — a rounded mean of roughly 11 analyst price targets spanning $390 to $550 — represents about 15% upside from the recent close near $401. The strongest supports are undeniable: surging AI chip-test demand, rising analyst targets, and an ambitious multi-year earnings model. The principal obstacles are a rich valuation, management's own warning about near-term demand lumpiness, and the fact that the stock has already retreated from a higher peak. The path likely hinges on sustained AI capital spending and execution against guidance, monitored most closely at the next earnings report.
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A.I.dvisor indicates that over the last year, TER has been closely correlated with LRCX. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if TER jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To TER | 1D Price Change % | ||
|---|---|---|---|---|
| TER | 100% | +0.99% | ||
| LRCX - TER | 79% Closely correlated | -0.55% | ||
| ONTO - TER | 75% Closely correlated | +0.64% | ||
| STM - TER | 74% Closely correlated | -1.23% | ||
| COHU - TER | 74% Closely correlated | -0.26% | ||
| NVMI - TER | 73% Closely correlated | -0.45% | ||
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| Ticker / NAME | Correlation To TER | 1D Price Change % |
|---|---|---|
| TER | 100% | +0.99% |
| Electronic Production Equipment industry (30 stocks) | 84% Closely correlated | +0.59% |
| TER industry (26 stocks) | 83% Closely correlated | -0.11% |