• Morgan Stanley sets a price target of $288 for Teradyne, Inc. (NASDAQ:TER), indicating a modest increase.
• Teradyne reports impressive fourth-quarter results, with adjusted earnings of $1.80 per share and revenue of $1.08 billion.
• The company anticipates significant growth in 2026, driven by strong demand in the compute and memory sectors, fueled by AI.

Teradyne, Inc. (NASDAQ:TER) is a leading supplier of automation equipment for test and industrial applications. The company is known for its advanced testing solutions used in the semiconductor industry and has been expanding its reach into the artificial intelligence (AI) sector. Teradyne competes with companies like Advantest and National Instruments in the testing equipment market.

On February 3, 2026, Morgan Stanley set a price target of $288 for Teradyne, which was trading at $282.98 at the time. This target suggests a modest 1.77% increase from the current price. The stock's recent performance has been strong, with a significant surge following a notable earnings beat in the fourth quarter.

Teradyne's fourth-quarter results were impressive, driven by strong demand for AI-related products. The company reported adjusted earnings of $1.80 per share, surpassing the $1.37 per share expected by analysts surveyed by LSEG. Revenue also exceeded expectations, reaching $1.08 billion compared to the forecast of $973 million, marking a 44% increase from the previous year.

The company attributes its growth to robust demand in the compute and memory sectors, fueled by AI. Teradyne is optimistic about future growth, expecting year-over-year increases across all its businesses in 2026. For the first quarter, the company anticipates adjusted earnings per share between $1.89 and $2.26, significantly higher than LSEG's estimate of $1.26.

Teradyne's stock has seen a notable increase, currently priced at $282.98, reflecting a 13.41% rise or $33.45. The stock has fluctuated between $246.80 and $285.92 today, with $285.92 marking its highest price over the past year. The company has a market capitalization of approximately $45 billion, with a trading volume of 11.78 million shares today.