Stifel sees a buying opportunity in this AI networking stock

Investing.com -- Stifel upgraded an AI networking name to Buy from Hold in a note on Tuesday, arguing that a “narrative shift, revenue shift, and optionality in AI compute [are] too important to ignore.”

The firm’s analyst Brian Chin also raised its price target on Teradyne to $225, up from $162, citing stronger long-term growth prospects and what it calls an underappreciated position in AI networking.

According to Stifel, the story looking ahead is increasingly compelling. The analyst says that “looking toward 2026/beyond, we expect growth to accelerate, reflecting a favorable, structural shift in Teradyne’s test revenue composition.”

Importantly, this expected improvement comes “even before considering potential share gain in the AI GPU/ASIC market.”

Stifel emphasises that Teradyne’s “positioning and growth dynamics in AI networking remain somewhat under-appreciated,” adding that demand from AI training and inference “supports an improved/resurgent memory (DRAM+data storage) outlook.”

Traditional drivers such as smartphone and consumer markets, historically central to chip test demand, are “now potential kickers to our estimates,” Chin said.

The analyst also highlighted strong unit growth and rising test complexity across “existing AI accelerator, networking, and memory customers,” which could allow Teradyne to “approach the lower-end of its target financial model as early as 2027.”

In addition, a major milestone could further accelerate confidence, with Stifel pointing to a “signature GPU test win at Nvidia (progressing),” saying it “would likely solidify this.”

With the upgraded rating and higher target, Stifel argues Teradyne is positioned for meaningful upside, supported by structural shifts and “+optionality of adding a new GPU customer.”

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