Teradyne (TER) jumped to the top of the S&P 500, closing at its highest level since January 20, 2025. The surge came after five-star-rated analyst Mehdi Hosseini from Susquehanna lifted his price target from $133 to $200, implying a 48% upside from current levels. Hosseini also reiterated his Buy rating, citing the company’s growing role in AI-powered semiconductor testing. As a result, TER stock gained 12.8% on Monday.
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Teradyne supplies automated test equipment to check semiconductors, wireless products, and industrial electronics. The company benefits from rising demand in areas like AI-driven chip testing and advanced manufacturing. TER stock has grown 48% in the last six months.
Here’s Why Susquehanna Is Bullish on TER Stock
Hosseini is optimistic about Teradyne’s growing partnership with chip giant TSMC (TSM), especially in GPU (graphics processing unit) “wafer sort testing.” He noted that TSMC plans to start buying Teradyne’s SoC testers for this project and expects to supply more units to its OSAT partners in 2026. Hosseini expects this collaboration to add significant revenue by 2026.
Additionally, he sees Teradyne’s rising influence as a positive step that’s not fully priced into the stock. After building a presence in wafer-sort testing, the company is also expected to move into the system-level test market, which checks how chips perform in real-world conditions.
Meanwhile, GPU and CPU suppliers are finding it difficult to manage the rising costs of producing certain types of chips. Susquehanna analysts stated that backend processes like testing and packaging are becoming more complex and expensive. Against this backdrop, Hosseini sees “a clear opportunity for new equipment and methods, positioning Teradyne as a key beneficiary.” He also hinted that the company might be actively collaborating with GPU suppliers and TSMC to reduce wafer test costs.
Overall, Hosseini believes that several aspects of TER’s core semiconductor test business support solid EPS growth. He added that the $200 price target is based on 25 times this year’s expected earnings of $8 per share.
Is Teradyne a Good Stock to Buy Now?
Wall Street has a Moderate Buy rating on TER stock, based on seven Buys, five Holds, and two Sells assigned in the last three months. The Teradyne’s average share price target is $111.38, which implies a downside of 17.61% from the current levels.
