Teradyne Inc. (NASDAQ:TER) stock rose nearly 2% in Tuesday’s premarket trading. The rebound followed a 13.3% drop in the previous session amid a broad selloff in AI and semiconductor equipment stocks.
Teradyne gained even as the broader market remained under pressure. Nasdaq futures fell 0.12%, while S&P 500 futures declined 0.18%.
The move could signal renewed interest in higher-beta semiconductor stocks following the sharp pullback. Traders are also watching whether Teradyne can hold its longer-term trend support.
Technical Analysis
TER remains under pressure after hitting its 52-week high in June.
The stock trades 8.9% below its 20-day simple moving average, 8.1% below its 50-day SMA and 10.5% below its 100-day SMA. That signals weakness in the short- and intermediate-term trend.
However, the stock remains 4.4% above its 200-day SMA. That keeps its longer-term uptrend intact for now.
The 20-day SMA also remains above the 50-day SMA. Meanwhile, the 50-day SMA is above the 200-day SMA. Both remain bullish longer-term signals.
Momentum has weakened. The MACD is below its signal line, while the histogram is negative. That suggests buyers may need a stronger catalyst to regain control.
- Key resistance: $379, near a cluster of short-term moving averages.
- Key support: $301.50, near a recent pivot zone and the stock’s longer-term trend support.
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Teradyne Expands India Presence
Separately, Teradyne said Monday it has opened an office in Bengaluru, India, as the company expands its presence in the country’s growing semiconductor industry.
The office will support customer engagement, applications, training and strategic partnerships. It will also help Teradyne serve chipmakers and electronics manufacturers as India builds domestic fabrication, packaging and testing capacity.
CEO Greg Smith said the permanent office reflects Teradyne’s long-term commitment to India.
The expansion comes as the government’s India Semiconductor Mission drives investment in domestic chip manufacturing infrastructure.
Analyst Outlook
Teradyne carries a Buy consensus rating with an average price forecast of $456.09.
Baird downgraded the stock to Neutral on Aug. 21 and maintained a $420 price forecast. Morgan Stanley maintained an Equal-Weight rating and raised its forecast to $397 on July 30. Evercore ISI maintained an Outperform rating and raised its forecast to $420 the same day.
The stock trades at a price-to-earnings ratio of about 45.2, reflecting a premium valuation.
Teradyne Benzinga Edge Rankings
The Benzinga Edge scorecard shows strong momentum, quality and growth readings for Teradyne.
Momentum scores 95.62, quality stands at 90.2 and growth comes in at 82.84. However, value scores just 10.82.
The combination points to a high-growth stock with strong historical momentum but a premium valuation. The key question is whether Teradyne can defend its 200-day trend and eventually reclaim the $379 resistance area.
ETF Exposure
Teradyne is held by several ETFs, including the VanEck Morningstar Wide Moat Growth ETF (NASDAQ:MGRO), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and ARK Space & Defense Innovation ETF (NASDAQ:ARKX).
Teradyne carries weights of 4.09%, 6.67% and 3.95%, respectively, in those funds. As a result, significant ETF inflows or outflows can add to buying or selling pressure.
Teradyne Price Action
Teradyne shares rose 1.72% to $334.85 in Tuesday’s premarket session, according to Benzinga Pro data.
Image via Shutterstock
