Teradyne (TER) shares surged 11% on Monday to $132.64, making it the S&P 500’s top performer and marking its highest close since January 20. The rally was fueled by Susquehanna Financial Group, which reiterated its Positive rating and raised its price target to $200 from $133, implying a 51% upside and highlighting the company’s role in AI-driven semiconductor testing.
The optimism stems from Teradyne’s reported breakthroughs within the AI compute supply chain. According to Susquehanna’s checks with key players in Taiwan, Teradyne is gaining substantial traction at Taiwan Semiconductor Manufacturing Company (TSMC), particularly in GPU wafer sort testing. The report indicates that TSMC is expected to adopt Teradyne’s Stage of Charge testers for its GPU processes, with third-party testing and packaging partners also projected to begin purchases starting in 2025.
This momentum comes as GPU and CPU suppliers grapple with rising costs in chip manufacturing. Analysts note that backend processes like testing and packaging are becoming increasingly complex and expensive. “This shift is creating a clear opportunity for new methodologies and equipment providers, positioning Teradyne as a key beneficiary,” the report stated. The company is reportedly collaborating actively with GPU suppliers and TSMC to reduce wafer test costs.
While meaningful revenue from these advancements is not expected until 2026, Susquehanna believes Teradyne’s growing influence is a positive, incremental development not yet fully reflected in the share price. Furthermore, after establishing a foothold in wafer sort testing, the company is expected to expand into the System Level Test market, which evaluates chip performance under real-world conditions.
The positive analyst commentary builds on recent operational strength. Teradyne’s stock had previously rallied in late July after it reported better-than-expected earnings. Although Q2 revenue declined both year-over-year and sequentially, its core semiconductor test business demonstrated notable resilience. Susquehanna emphasized that “several drivers within TER’s core Semi Test mix” support meaningful EPS growth. The new $200 price target is based on a multiple of 25 times the projected 2024 earnings of $8 per share.
Wall Street’s view on Teradyne is generally favorable, with the company’s strategic positioning in the AI wave prompting a market re-rating.
