Teradyne is experiencing an increase in BofA's calendar!

Bank of America upgraded chip testing company Teradyne Inc. from 'Underperform' to Buy. The reason for this upgrade is the company's entry into a multi-year growth period supported by increased complexity in semiconductor engineering and new opportunities in the robotics field.

The broker raised its target price from $205 to $145, offering approximately a 17% upside based on Wednesday's closing. At the same time, it increased its earnings forecasts by 35% through 2027, expecting annual sales to grow by 18% and earnings to increase by 32% between 2025 and 2028. This situation reverses years of stagnant growth.

Bank of America reported that Teradyne's future has improved due to TSMC accelerating its introduction of new chip processes and the rising demand for high bandwidth memory and artificial intelligence computation chips. Additionally, it highlighted a potential recovery in smartphone testing due to Apple adopting 2-nanometer technology, along with a robotic cycle driven by Amazon's warehouse improvements.

Analysts noted that Teradyne could achieve earnings of up to $10 per share by 2028, which is a figure higher than the company's long-term target of $8.25. The company's valuation remains attractive compared to its competitors in the semiconductor equipment space.

According to analysts, Teradyne is now equipped with 'multiple growth engines.' As chip architectures become more complex, test demand is expected to rise. However, there are risks involved in this process, such as uncertain memory and ASIC orders, dependence on Apple's transition to 2nm, and the uncertain timing of Nvidia's next GPU program.