Update shared on23 Sep 2025
Fair value Increased 3.61%Teradyne’s consensus price target has been raised to $120.25, reflecting stronger analyst conviction driven by momentum in AI compute and memory testing—including traction with TSMC and HBM4 designs—and optimism for potential expansion into Nvidia GPU testing, despite some lingering caution on estimate revisions.
Analyst Commentary
- Bullish analysts highlight meaningful traction for Teradyne in AI compute supply chain, notably with TSMC for GPU wafer sort testing, and anticipated SoC tester purchases extending into 2026.
- Upward revisions are supported by evidence of near-term strength in AI compute and memory testing, with HBM4 designs expected to drive sequential growth.
- Additional wins in HBM4 testing and potential expansion into Nvidia GPU testing are considered catalysts that could support a stock re-rating.
- Upgrades acknowledge optimistic management commentary and improved outlook regarding compute opportunities, while maintaining a degree of conservatism relative to valuation.
- Bearish analysts remain cautious, viewing potential Nvidia RTX expansion as incremental and expressing concern for possible downward Street estimate revisions despite recent earnings beats.
What's in the News
- Teradyne launched the Magnum 7H, a next-generation memory tester tailored for high-bandwidth memory devices in AI and cloud infrastructure, with significant adoption at major HBM manufacturers.
- The company completed its share buyback plan announced January 2023, repurchasing 8,608,000 shares (5.44%) for $878.21 million; no shares were repurchased under a new buyback announced April 2025.
- Management guided Q3 2025 revenue between $710 million and $770 million, with GAAP EPS of $0.62 to $0.80.
- Teradyne was removed from multiple Russell Growth indices, including the Russell 1000 Growth, Russell 3000 Growth, and Russell Midcap Growth.
Valuation Changes
Summary of Valuation Changes for Teradyne
- The Consensus Analyst Price Target has risen slightly from $116.06 to $120.25.
- The Future P/E for Teradyne has risen slightly from 24.00x to 24.87x.
- The Discount Rate for Teradyne remained effectively unchanged, moving only marginally from 9.98% to 9.97%.
Disclaimer
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