Why Teradyne, Inc. (TER) Went Down on Tuesday

We recently compiled a list of the 10 Stocks Battered by Bearish Outlooks. In this article, we are going to take a look at where Teradyne, Inc. (NASDAQ:TER) stands against the other stocks.

Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.

The stocks–three of which belong to the travel and tourism industry–registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.

The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A team of engineers discussing around a fully-equipped flex test platform system.

Teradyne, Inc. (NASDAQ:TER)

Teradyne, Inc. (NASDAQ:TER) dropped for a second day on Tuesday, slashing 17.05 percent to finish at $87.07 each, following its revised and lowered guidance in response to the potential impact of President Donald Trump’s tariff threats.

In a presentation ahead of its Investor Day, Teradyne, Inc. (NASDAQ:TER) said that it now expects second quarter revenue to be flat or lower by 10 percent from the first quarter of the year and up by between 5 to 10 percent on a full-year basis. Outlook for the first quarter, however, remained unchanged.

Meanwhile, Teradyne, Inc. (NASDAQ:TER) expects earnings per share and revenues for the fiscal year 2026 to settle “at the low end of the previous 2026 earnings model.”

Teradyne, Inc. (NASDAQ:TER) is an automated test equipment and robotics company whose clients include Samsung, Qualcomm, Intel, Analog Devices, IBM, and Texas Instruments, among others.

Overall TER ranks 2nd on our list of Tuesday’s worst performers. While we acknowledge the potential of TER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TER but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.