New York, June 13, 2026, 17:04 (ET)
- Teradyne jumped 5.72% to end Friday at $403.20 after Nasdaq said TER will be added to the Nasdaq-100 before the open on June 22.
- The rally is key as adding the Nasdaq-100 often sparks demand from index funds tracking the benchmark.
- Shares remain tied to a high valuation, with the trailing P/E around 75. Analyst price targets are under Friday’s close.
Teradyne, Inc. shares jumped Friday after word the chip-testing company will join the Nasdaq-100, one of the main U.S. growth-stock indexes. TER gained $21.80 to close at $403.20, up 5.72%. The stock touched $407.73 in the session, market data showed. Teradyne’s market cap hit about $63.6 billion, keeping it close to its 52-week high of $422.11.
Nasdaq’s June quarterly rebalance is prompting the move. Nasdaq announced Teradyne, Astera Labs, CoreWeave, Nebius Group and Rocket Lab are joining the Nasdaq-100, set to replace Charter Communications, Cognizant, Insmed, Verisk Analytics and Zscaler before trading starts Monday, June 22. The Nasdaq-100 tracks 100 of the biggest non-financial names trading on Nasdaq. According to Nasdaq, more than 200 investment products with assets topping $800 billion follow the index worldwide.
Index inclusion can end up moving the stock price as passive funds may need to buy shares near the effective date. Sherwood reported Friday that Teradyne and the other four companies set to join the index traded higher in premarket after the news. The additions are set to lift the index’s exposure to the AI infrastructure stack.
Bulls say Teradyne isn’t just catching index-related flows—it’s also seeing tailwinds from AI chip test demand. The company set a record for first-quarter revenue in April, posting $1.282 billion, up 87% from last year. GAAP EPS came in at $2.53, non-GAAP at $2.56. Non-GAAP EPS leaves out what management calls non-core items. CEO Greg Smith pointed to “approximately 70% of our revenue tied to AI-related demand,” tying the figures to Teradyne’s wafer-to-AI data center approach. Teradyne, Inc.
June 22 is the next date traders are eyeing, when the Nasdaq-100 rebalancing takes effect. Investors want to see if index-linked buying keeps the rally going or fades into “sell-the-news” action after funds wrap up. After that, Teradyne’s next fundamental driver arrives. The company sees Q2 revenue in the $1.15 billion to $1.25 billion range, with non-GAAP EPS between $1.86 and $2.15, both below last quarter’s record results. MarketBeat has the next earnings date as July 29 after the close. Teradyne, Inc.
Valuation and expectations make up the bear case here. Teradyne is trading around 75 times trailing earnings, a P/E ratio that shows how much buyers are paying for profits now. The average 12-month price target from 18 analysts on StockAnalysis is $374.82. MarketBeat’s 16-analyst average target is $339.80. Both targets are below Friday’s $403.20 close, even though most ratings are positive.
TER is still an expensive way to play AI infrastructure and index-fund flows. For buyers coming in now, the stock looks risky—not obviously cheap. Growth remains the pitch, but much of that seems baked in. Teradyne lists its own risks: delays from big customers, supply chain trouble, tariffs, export limits, and China chip restrictions.
