Yes, there is considerable risk of terrorism in Algeria. Al-Qaeda and AQ-M appear to have freedom of movement towards the north-east border with Tunisia, clockwise through to Western Sahara in the south-west. The last significant attack was in January 2013, targeting expatriate workers in transit, before infiltrating their compound and causing mass casualties.
There is reasonable risk of terrorism in Algiers. It is likely terrorist groups have the capability to mount attacks against international travelers if the opportunity arose. Areas of interest are likely to include westerner hotspots, government infrastructure and transportation facilities.
Having an experienced team of security specialists who are trained to navigate through challenging situations should strongly be considered for travel in Algeria.