Teradyne shares fell by 2.77% in the most recent session while the broader semiconductor index gained 1.2%. This marks the second consecutive daily decline, following a 2.78% drop the previous trading day. The stock’s setback came despite positive momentum across technology names, reflecting specific investor concerns about Teradyne’s near-term order visibility in its chip test equipment division.

Daily volume reached approximately 4.3 million shares, representing a 30% increase over the 30-day average, as institutional investors rotated out of capital-intensive hardware names into AI software plays. Block trades accounted for roughly 18% of total turnover, signaling growing participation by hedge funds adjusting their exposure to automated test equipment providers.

Following the price decline, three major brokerages modified their outlook on Teradyne. One firm lowered its rating from overweight to neutral, citing softer-than-expected order intake in the communications segment. Another trimmed its revenue forecast by 4% for the current fiscal year, highlighting potential delays in customer deployments. Despite these downgrades, a third analyst reiterated a buy rating, pointing to the company’s healthy backlog and long-term growth prospects driven by high-bandwidth memory testing.