This Is the Best Semiconductor Stock to Buy Now, Says Goldman Sachs (GS)

Wall Street investment bank Goldman Sachs (GS) says Teradyne (TER) is the best stock to buy in the semiconductor space as the market recovers.

Analysts at Goldman Sachs have named Teradyne their highest-conviction call in the semiconductor space. “We see upside to Street for the quarter and guidance, given upside we see for tester demand across computing, optical, and memory – with potential disclosure around its opportunity to gain share in GPU testing,” writes Goldman Sachs in a note to clients.

More broadly, Goldman Sachs sees upside across the entire semiconductor sector heading into first-quarter earnings, and now that the U.S. and Iran have announced a ceasefire in their war. That said, Goldman Sachs says investors need to be selective with semiconductor stocks.

Strong Set-Up for Semiconductors

Goldman Sachs says that a recent pullback in several top-performing semiconductor stocks over the past few weeks has created a more favorable trading set-up in the sector. The bank says that investors should focus on semiconductor companies that are focused on compute, memory, and storage.

Those are the areas where Goldman sees the strongest potential for estimate beats during first-quarter 2026 earnings season. In Teradyne’s case, the Goldman Sachs recommendation comes with its stock up 65% this year.

Is TER Stock a Buy?

Teradyne’s stock has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 12 Buy and five Hold recommendations issued in the last three months. The average TER price target of $313.20 implies 10% downside from current levels.