Teradyne shares plunge over 16% amid investor concerns on AI market outlook

9 articles · Updated · Barron's · Apr 29

Teradyne stock fell to $319.06 in midday trading Wednesday, marking its third consecutive decline despite reporting Q1 earnings per share of $2.56 on $1.3 billion in sales, both above expectations.
The drop follows investor nervousness after OpenAI reportedly missed revenue targets, fueling doubts about AI sector strength, even as Teradyne’s Q2 guidance slightly exceeded Wall Street forecasts.
Analysts note normalization from peak Q1 margins and caution around second-half demand, with AI-related applications now making up about 70% of Teradyne’s revenue, highlighting ongoing volatility in AI-linked stocks.

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