TER: AI Semiconductor Test Complexity And Robotics Expansion Will Drive Upside Through 2027

Analysts have raised their price target for Teradyne from $172.63 to $184.69, citing accelerating demand in AI-enabled semiconductor testing, greater manufacturing complexity, and a more positive outlook in industrial automation and robotics segments.

Analyst Commentary

Recent analyst updates reflect a revealing mix of optimism about Teradyne's prospects within the AI-driven semiconductor industry, as well as measured caution regarding potential headwinds and expectations.

• Bullish analysts have significantly increased their price targets following Teradyne's third-quarter results, with targets rising to as high as $205. This is driven by the inflection of AI-enabled semiconductor test demand and upside potential in the coming years.
• AI-related growth catalysts, such as greater testing complexity for next-generation compute and memory chips and renewed smartphone demand linked to the adoption of advanced products, are fueling expectations for accelerated revenue and earnings growth through at least 2027.
• Activity in the robotics and industrial automation segment is strengthening. This is supported by increased order momentum from major technology companies and broader warehouse automation initiatives.
• Several firm upgrades cite Teradyne's ability to gain meaningful traction with leading chipmakers. This reflects heightened industry confidence in management's execution and the likelihood of upward revisions to future earnings estimates.

• Bearish analysts remain cautious that current market optimism may be ahead of actual execution. They flag that expectations for industry-wide capital expenditure and equipment spending in 2026 could be overly high.
• While seeing near-term improvements in memory and AI compute investment, some believe the pace of orders and sales visibility may be constrained by cyclical factors or macro uncertainties impacting semiconductor fab investments.
• Certain price target hikes have been driven more by multiple expansion than by a fundamental upside in core estimates. This reflects lingering questions about the durability of demand beyond the current AI cycle.

What's in the News

• Teradyne has completed the repurchase of 10,780,000 shares, representing 6.81%, for $1,124.44 million as part of its buyback program announced in January 2023 (Buyback Tranche Update).
• Michelle Turner has been appointed as Chief Financial Officer effective November 3, 2025. She will succeed Sanjay Mehta, who will continue as an executive advisor until his retirement in 2026 (Executive Changes, CFO).
• The company has issued earnings guidance for Q4 2025, expecting revenue between $920 million and $1,000 million and GAAP net income of $1.12 to $1.39 per diluted share (Corporate Guidance, New/Confirmed).
• Teradyne launched the ETS-800 D20, a new test system designed for both high-volume and high-mix or low-volume power semiconductor device testing (Product-Related Announcements).
• Teradyne introduced the Titan HP SLT platform to support AI and cloud infrastructure markets and expanded its UltraPHY product line with the release of the UltraPHY 224G for next-generation semiconductor interface testing (Product-Related Announcements).

Valuation Changes

• Fair Value: Increased from $172.63 to $184.69, reflecting a modest upward revision in the company's projected worth.
• Discount Rate: Increased slightly from 10.39% to 10.45%, indicating a marginal increase in the risk factors incorporated in the discounting process.
• Revenue Growth: Projected to rise from 16.80% to 16.94%, showing a small improvement in anticipated top-line expansion.
• Net Profit Margin: Decreased slightly from 24.30% to 24.07%, suggesting a minor dip in expected profitability levels.
• Future P/E: Increased from 29.15x to 32.10x, indicating that the market anticipates higher future earnings multiples.