Key Points
Teradyne, Inc. (TER) advanced decisively today, closing at $189.35 versus a previous close of $179.63, gaining 5.41% on the session. The move added $9.72 in market value per share and pushed the stock within striking distance of its 52-week peak, now just 1% below the $191.56 high. The magnitude and persistence of the upswing point to strong demand for shares throughout the trading day as buyers stepped in on positive sentiment and constructive catalysts.
Trading activity occurred on below-average volume, with 782,784 shares changing hands versus an average of 3,976,336 over the past 90 days. While lighter volume can sometimes temper conviction, today’s price action still reflected favorable momentum as bids steadily absorbed supply at higher levels. For investors, the combination of a clear price uptrend and proximity to a new 52-week high often signals strengthening confidence and a willingness to assign a premium to future earnings potential.
From a technical and behavioral standpoint, closing near session highs and near the top of the yearly range underscores an upward trajectory that has been building. The advance, paired with improving fundamental narratives, suggests that market participants see further opportunity ahead. With the stock now hovering just shy of its 52-week high, continued follow-through in the days ahead could confirm a bullish continuation pattern, while any near-term consolidation above recent breakout levels would still reflect underlying strength. In the meantime, today’s session represents constructive, momentum-led action for TER.
Why Teradyne, Inc. Price is Moving Higher
Teradyne, Inc. is rallying on a confluence of positive catalysts and improving earnings visibility. Shares finished at $189.35, building on an intraday surge that left the stock 1% shy of the $191.56 high. The company’s market cap stands at $28.13 billion, supported by EPS (TTM) of $2.75. Activity today occurred on 782,784 shares versus a 90-day average of 3,976,336, indicating a strong price move on lighter-than-usual volume as investors positioned ahead of accelerating fundamentals and upbeat analyst views.
The key driving forces were a major analyst upgrade and powerful earnings momentum. On December 2, 2025, Stifel upgraded Teradyne from Hold to Buy and lifted its price target from $162 to $225, citing strong growth in AI-driven semiconductor test demand. This follows recent results that outpaced expectations: revenue of $769 million versus $744 million consensus, and EPS of $0.85 versus $0.79. Management also raised guidance for the December quarter, forecasting revenue of $960 million and EPS of $1.33, well ahead of prior estimates of $814 million and $1.02. That guidance implies a notable acceleration in both sales and earnings, with analysts highlighting Teradyne’s expanding role in testing AI chips, including potential new business with Nvidia.
Further, multiple firms — including BofA Securities, UBS, and Northland — have either upgraded the stock or raised price targets in recent weeks, reinforcing bullish sentiment. The latest $0.12 per-share dividend, payable on December 17, 2025, complements the improving outlook. Altogether, the combination of earnings beats, raised guidance, AI-related demand tailwinds, and broad analyst support has energized buyers, sustaining the strong upward momentum visible in today’s trade.
What is the Teradyne, Inc. Rating - Should I Buy?
Weiss Ratings assigns TER a C rating. Current recommendation is Hold.
The rating is built on the following indices: the Fair Growth Index points to moderate expansion consistent with 4.33% revenue growth; the Excellent Efficiency Index is supported by a 15.77% ROE and a 15.49% profit margin; the Excellent Solvency Index highlights a strong balance sheet; the Fair Total Return Index reflects middling risk-adjusted gains; the Weak Volatility Index indicates elevated price swings; and the Weak Dividend Index aligns with a modest 0.27% yield.
Valuation also factors into the balance of risks and rewards. A 65.32 P/E ratio reflects the market’s willingness to pay a premium for anticipated growth, but it also raises the bar for future execution. Efficiency metrics are a clear plus — profitability and returns on capital remain solid — while growth and total return are judged as fair, and income appeal remains limited.
Relative to peers, the group includes NVDA (B), AAPL (B), and MSFT (B). These names collectively carry higher ratings that reflect stronger aggregate risk-adjusted performance, broader total return profiles, and, in some cases, deeper competitive moats at current valuations. TER’s improving fundamentals are promising, but the peer set still rates better overall on our indices.
In sum, the C (Hold) reflects a balanced profile: excellent efficiency and solvency underpin the story, yet fair growth and total return, higher volatility, and a weak dividend temper the outlook. The rating signals average risk-adjusted prospects at today’s valuation.
About Teradyne, Inc.
Teradyne, Inc. is a leading supplier of automated test equipment within the Information Technology sector, serving the Semiconductors and Semiconductor Equipment industry. The company designs, develops, and supports systems that test complex integrated circuits, system-on-chip devices, and advanced packages before they enter high-volume production. Its platforms are used by chip designers, foundries, and outsourced assembly and test providers to validate functionality, measure performance, and ensure quality from wafer probe through final test across logic, analog, mixed-signal, memory, and RF applications.
Teradyne’s portfolio includes high-throughput semiconductor testers, flexible handlers, and software that automate test program development and analytics. Solutions such as UltraFLEX and J750-class systems are widely deployed for leading-edge nodes and high-pin-count devices, helping customers reduce cost of test, speed time-to-market, and improve yield. The company also provides wireless test solutions through specialized instrumentation that characterizes connectivity standards and RF front-end performance, supporting smartphones, IoT devices, and emerging 5G and Wi-Fi technologies.
Beyond test, Teradyne participates in industrial automation, offering collaborative robots and autonomous mobile robots that help manufacturers enhance productivity and safety in applications like assembly, machine tending, materials handling, and inspection. Its automation brands are designed for ease of deployment, open ecosystems, and rapid payback, extending Teradyne’s domain expertise from electronics into broader factory workflows. With a large installed base, deep relationships across global chipmakers and electronics manufacturers, and a reputation for engineering rigor, Teradyne benefits from switching-cost advantages and recurring software and services. This combination positions the company to support successive technology cycles, including AI accelerators, automotive electronics, and advanced packaging trends.
Investor Outlook
Momentum has turned constructive for TER as earnings beats, raised guidance, and AI-related test demand attract buyers. The C (Hold) rating supports a balanced, patient stance while acknowledging improving fundamentals and a strong balance sheet that can underpin future growth.
See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.