Here’s Why BofA Has a Buy Rating on Teradyne, Inc. (TER)

Teradyne, Inc. (NASDAQ:TER) is one of the Unstoppable Technology Stocks to Buy. On December 16, Vivek Arya from Bank of America Securities reiterated a Buy rating on the stock and raised the price target from $205 to $235. On the same day, analyst C J Muse from Cantor Fitzgerald reiterated a Buy rating on Teradyne, Inc. (NASDAQ:TER) and raised the price target from $200 to $240.

Analyst Arya from BofA noted that the updated price target reflects the firm’s updated pricing model for US semiconductor stocks under its coverage. Regarding the concerns over an AI bubble, BofA sees 2026 to be just the mid-point of an 8-10 year-long bull run for AI stocks. He added that this is driven by companies upgrading from traditional IT infrastructure to AI-compatible infrastructure. However, the firm cautioned that while the stocks might remain slightly choppy due to the increased scrutiny for return on investment, faster large language model builders and AI factories are expected to offset the choppiness.

C J Muse from Cantor Fitzgerald noted that the Philadelphia Semiconductor Index (SOX) outperformed the S&P 500 by about 30 points in calendar year 2025. Analysts expect SOX to lead broader markets higher into 2026, driven by early AI era demand in computing, networking, memory, and equipment sectors. Moreover, the analyst also believes that exponential growth in AI infrastructure spending reflects a positive macro backdrop for semiconductors despite short-term cyclical volatility.

Teradyne, Inc. (NASDAQ:TER) designs, manufactures, and sells automated test equipment for semiconductors, along with robotics solutions like collaborative robotic arms and autonomous mobile robots.

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Disclosure: None. This article is originally published at Insider Monkey.