20 Worst Performing AI Stocks of Last Week

16. Teradyne, Inc. (NYSE:TER)

Weekly Decline: 11.43%

Number of Hedge Fund Holders: 41

Teradyne, Inc. (NYSE:TER) is a semiconductor materials and equipment company. It offers automated test systems and robotics products worldwide and is based in North Reading, Massachusetts.

Unlike some other companies on our list, Teradyne, Inc.’s (NYSE:TER) performance has actually been confidence-inspiring. In the second quarter, revenues hit $730 million, above the top end of guidance. GAAP EPS also surpassed expectations coming in at $1.14, compared to the $0.90-$1.10 guidance range. The robustness of Teradyne, Inc.’s (NYSE:TER) quarterly performance finds credit primarily in the company benefiting from increased demand for AI applications and improvements in its semiconductor test and robotics segments.

Teradyne, Inc. (NYSE:TER) has constantly maintained a competitive edge by introducing new products, expanding customer bases, and improving operational efficiencies. The company’s semiconductor test segment saw a 14% year-over-year increase in revenue, which was driven primarily by strong demand recovery across memory and Systems on Chip (SoC). The robotics segment also grew sequentially and year-over-year, coming in at $90 million. With such impressive results and tailwinds propelling Teradyne, Inc. (NYSE:TER) higher, the recent weekly decline of the stock seems to merely be a small bump in the road for this AI player.

In total, 41 hedge funds were long Teradyne, Inc. (NYSE:TER) in the second quarter, with a total stake value of $1.4 billion.

TimesSquare Capital Management mentioned Teradyne, Inc. (NYSE:TER) in its fourth-quarter 2023 investor letter:

“New to the portfolio was Teradyne, Inc. (NASDAQ:TER), which produces testing and measurement equipment for semiconductors and other complex electronic systems. Already a holding in our Mid Cap Growth Strategy, after providing lower-than-expected guidance for the final quarter of its fiscal year Teradyne’s price fell, and its market cap entered the buy range for this strategy. We believed that its chip testing volumes reached a low point and were poised to recover. Since we started buying, Teradyne’s shares rallied 30% for the remainder of the quarter.”