10 AI News Making Waves on Wall Street

8. Teradyne, Inc. (NASDAQ:TER)

Number of Hedge Fund Holders: 43

Teradyne, Inc. (NASDAQ:TER) creates automated test systems and robotic solutions, specializing in AI-powered technologies for semiconductor evaluation, wireless testing, and manufacturing operations.

On January 21, Morgan Stanley downgraded Teradyne (NASDAQ:TER) to Underweight from Equal-weight, cutting the price target to $117 from $121. The firm noted that Teradyne has lost market share to Advantest, especially in HPC and DRAM, while growth in its key markets like smartphones and NAND has stalled. The firm doesn’t expect this trend to reverse through 2025-2026 and believes the company’s and Wall Street’s growth expectations are overly optimistic. Despite growth in AI ASIC and Apple, these developments aren’t enough to significantly impact the broader test market. Morgan Stanley forecasts slower revenue growth for Teradyne and expects the company to lower its 2025-2026 targets in its upcoming earnings report.