Teradyne Shares Fall After Baird Downgrade

Teradyne (TER) stock fell 3.9% after Baird downgraded it to Neutral with a $420 price target, citing stretched valuation and concerns over AI and hyperscaler spending sustainability. The firm argues GPU testing catalyst is priced in and next growth drivers are too distant. TER's decline contrasts with broader market gains, highlighting company-specific pressures.

Amylyx Pharmaceuticals shares rose 53% after its avexitide treatment met trial endpoints. Meta Platforms fell 3% amid a lawsuit. Carvana dropped 3% after director stock sales. UGI Corporation surged 12% on a $9B KKR bid report. AI-related stocks declined. Klarna fell 21% on weak guidance. Baidu dropped 12% on earnings miss. Home Depot rose slightly on earnings beat. Fabrinet fell 20% on margin concerns. Memory stocks declined. Duolingo rose 7% on an upgrade.

Teradyne (TER) reported Q2 revenue of $1.329B, up 104% year over year, and non-GAAP EPS of $2.47, up from $0.57. Results beat analyst estimates by $0.42/share and revenue by about $110M. Q3 guidance and margins were above expectations, with free cash flow of $378M in the quarter.

Robotics and physical AI stocks rose after China’s Unitree Robotics Shanghai IPO reportedly drew 8,000x retail oversubscription. In U.S. trading, Ouster gained 7% near $45, Symbotic rose 3% to about $41, and Teradyne added 3% to about $376. Ouster reported Q2 revenue of $54.63M (+55.9% YoY) and 17,000+ sensors; Symbotic has a ~$22.5B backlog. Analysts’ consensus targets cited $58 for OUST and $450 for TER.

Teradyne reported Q2 revenue of $1.33B vs $1.22B expected and adjusted EPS of $2.47 vs $2.05, citing AI-driven demand across semiconductor test, product test, and robotics. CEO Gregory Smith said over 60% of revenue is AI-related. Q3 guidance calls for $1.25B revenue and $2.00 adjusted EPS at midpoint. Analysts asked about test equipment share, wafer-to-data-center strategy, memory drivers, and CPU vs GPU testing.

Teradyne (NASDAQ: TER) shares rose about 3.3% midday after Q2 results and guidance beat expectations. The company reported non-GAAP EPS of $2.47 on revenue of $1.33B, topping analyst forecasts by $0.42 and about $110M, respectively. Q3 guidance calls for revenue $1.2B to $1.3B and adjusted EPS $1.85 to $2.15, both above estimates, though gains eased amid broader macro concerns.