Stifel upgraded Teradyne (NASDAQ: TER) to Buy from Hold and raised its price target to $225 from $162, sending shares up more than 5% intra-day on Tuesday. The firm said it expected growth to accelerate in 2026 and beyond as Teradyne benefited from a structural shift in test-equipment demand.

Stifel noted that Teradyne's positioning in AI networking, AI training/inference, and memory (DRAM and data storage) markets remained underappreciated, while core consumer and smartphone end-markets could provide incremental upside to estimates. The firm argued that rising unit growth and increasing chip-test complexity across AI accelerators, networking silicon, and memory suppliers could help Teradyne reach the lower end of its long-term financial model as early as 2027.

A potential GPU test win at Nvidia, which Stifel said continued to progress, would further reinforce this view. The firm's new $225 target price, based on 32× CY27 EPS, included a modest premium for the possibility of securing an additional major GPU customer.