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Investing.com - UBS raised its price target on Teradyne (NASDAQ:TER) to $200 from $165 on Thursday, maintaining a Buy rating on the semiconductor testing equipment maker amid stronger-than-expected guidance.
The firm cited new order pull-ins primarily related to custom ASIC testing for Marvell’s N3 version of Amazon’s Trainium2 chip, as well as networking chips from Nvidia and Broadcom. Memory testing demand is also increasing, likely related to Samsung’s HBM (High Bandwidth Memory) production.
UBS noted Teradyne’s bullish tone regarding 2026 prospects, indicating that despite a higher Q4 2025 base and potential step down in memory testing for Q1 2026, the company does not anticipate a significant sequential revenue decline, if any.
The firm highlighted that Teradyne is gaining market share across nearly every major application and device type, with significant upside coming from custom ASIC programs at Marvell for both Amazon and, later in 2026, Microsoft.
Apple remains "a big wildcard" for Teradyne’s 2026 performance, though UBS expressed strong optimism given the combination of higher transistor density, full deployment of new application processors across the iPhone lineup in 2026, and increased test times resulting from the shift to wafer-level multi-chip packaging.
In other recent news, Teradyne reported impressive third-quarter earnings for 2025, with earnings per share of $0.85 and revenue of $769 million, both surpassing market expectations. The company also raised its guidance for the December quarter, projecting revenue of $960 million and earnings per share of $1.33 at the mid-point, which is significantly above consensus estimates. Cantor Fitzgerald reiterated its Overweight rating for Teradyne, maintaining a price target of $180, following what it described as a "blowout quarter."
Additionally, BofA Securities upgraded Teradyne from Underperform to Buy, raising its price target to $205.00. This upgrade came after Teradyne’s third-quarter earnings call, where the firm addressed previous concerns and projected a multi-year acceleration in sales and earnings growth. Northland also raised its price target for Teradyne to $186, maintaining an Outperform rating, citing strong quarterly results and robust guidance driven by increasing demand from artificial intelligence applications. These developments highlight analysts’ positive outlook on Teradyne’s performance and future growth potential.
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