Teradyne Falls 13.6% as Semiconductor Selloff Hits Chip Test Makers

Teradyne shares fell 13.63% on July 2 as a broad semiconductor selloff sent the Philadelphia Semiconductor Index down more than 7%. The rout followed a Citi warning on AI infrastructure spending returns and reports that Meta plans to sell access to its AI computing power, stoking overcapacity fears. As a chip test-equipment supplier, Teradyne is highly sensitive to semiconductor capex cycles.

TER shares fell 13.63% on July 2, one of the steepest single-name drops in a broad semiconductor selloff that sent the Philadelphia Semiconductor Index down more than 7%.

The rout followed a warning from a Citi analyst questioning whether large cloud platforms can sustain their pace of AI infrastructure spending without demonstrating returns, while reports that Meta plans to sell access to its AI computing power stoked fears of future compute overcapacity. As a supplier of semiconductor test equipment, Teradyne is highly sensitive to chipmakers' capital spending cycles, and the selloff hit the sector broadly, with Intel and Marvell also falling sharply in the same session.

The drop interrupts a strong recent run for the stock, which had gained about 4% over the prior month and traded as high as $487.91 over the past year. Watch whether AI capital-expenditure commentary from the hyperscalers stabilizes sentiment, and how test-equipment order books hold up if chip demand forecasts get trimmed.