Why Teradyne (TER) Stock Is Trading Lower Today

What Happened?

Shares of semiconductor testing company Teradyne TER fell 3.1% in the morning session after a recent "Sell" rating initiation from Goldman Sachs cast a shadow over the company's growth prospects. The investment bank set a price target of $80.00, citing concerns that Teradyne is not well-positioned in the high-growth market for testing merchant GPUs (Graphics Processing Units), which are crucial for AI applications. Adding to the bearish sentiment, Goldman Sachs pointed to ongoing cyclical weakness in the industrial markets, which affects Teradyne's robotics business. The firm also expressed uncertainty about the growth trajectory of the company's mobile segment.

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What Is The Market Telling Us

Teradyne’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Teradyne is down 24.7% since the beginning of the year, and at $95.29 per share, it is trading 41.5% below its 52-week high of $163 from July 2024. Investors who bought $1,000 worth of Teradyne’s shares 5 years ago would now be looking at an investment worth $1,100.