Artificial intelligence (AI) is the future, and investors who haven’t gotten aboard the AI train may be feeling left out. Whether it’s the incredible rise seen in chipmakers such as Nvidia (NVDA) or the surge we’ve seen in a host of data center and utilities stocks, there are multiple ways for investors to play this trade outside of tech companies building the next world-class AI applications and user-facing technologies.
Within the picks-and-shovels space, Teradyne (TER) is one of the more interesting companies I’ve started to look at as a potential long-term winner. It turns out I’m not the only one assessing this company for its long-term growth potential.
Analysts at Susquehanna just set a new Street-high price target of $200 per share for TER stock. Let’s dive into what to make of this call and whether Teradyne has what it takes to surge more than 50% from current levels.
Teradyne’s business model is both simple and complex at the same time. Investors can easily understand the soaring demand for chips, making the semiconductor manufacturing equipment maker inherently more valuable if demand for its machines surges. However, the extremely complex nature of developing such machines means there are less than a handful of companies around the world that can do what Teradyne does and be profitable. It’s a winner-takes-most space, and in some respects, analysts and investors are starting to get the idea that Teradyne isn’t getting the love it deserves.
Susquehanna analysts appear to believe that higher growth in 2026 and beyond is not only possible but likely. This is the key driver of their price target hike, with analysts noting that other players in this space should:
“…begin acquiring TER’s [system-on-a-chip] testers for this purpose, with additional units to be purchased and consigned to OSA partners in 2026. While we don’t anticipate a material incremental revenue contribution from this win until 2026, TER’s growing presence across multiple test insertion points—wafer sort and potential adoption at System Level Test…
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