What Happened?

A number of stocks fell in the afternoon session after surging crude oil prices and a jump in benchmark Treasury yields stoked renewed concerns over inflation and prolonged corporate borrowing costs. Oil prices surged after the U.S. military said it was striking Iranian targets, pressuring bonds as a global rout raised borrowing costs, the Wall Street Journal said. The 10-year Treasury yield climbed to about 4.79%, its highest in roughly 20 months, according to CNBC. That pairing raises the cost of capital for multi-billion-dollar fab builds while higher energy and logistics costs threaten to squeeze margins across global chip supply chains.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Semiconductor Manufacturing company Entegris (NASDAQ: ENTG) fell 4.7%. Is now the time to buy Entegris? Access our full analysis report here, it’s free.
• Processors and Graphics Chips company Penguin Solutions (NASDAQ: PENG) fell 3.9%. Is now the time to buy Penguin Solutions? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Teradyne (NASDAQ: TER) fell 4.9%. Is now the time to buy Teradyne? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Applied Materials (NASDAQ: AMAT) fell 3.7%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company KLA Corporation (NASDAQ: KLAC) fell 3.3%. Is now the time to buy KLA Corporation? Access our full analysis report here, it’s free.

Zooming In On Teradyne (TER)

Teradyne’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 3.3% on the news that investors trimmed chip exposure to reduce portfolio risk ahead of Nvidia's highly anticipated earnings report. Semiconductor shares experienced widespread selling pressure as traders locked in profits ahead of Nvidia's second-quarter fiscal 2027 financial release. As the dominant player in artificial intelligence processors, Nvidia's earnings and forward guidance set the standard for the broader technology hardware industry. Major chipmakers, including Intel, Advanced Micro Devices, and Taiwan Semiconductor Manufacturing Company, recorded declines ranging from 3% to 5%. Market participants frequently de-risk into high-variance catalysts, especially following significant year-to-date gains in large-cap semiconductor stocks. Caution was further compounded by reports from Bloomberg of potential price increases exceeding 15% on servers equipped with AI chips, prompting investors to adopt a defensive stance across the supply chain.

Teradyne is up 62.1% since the beginning of the year, but at $336.38 per share, it is still trading 30.5% below its 52-week high of $483.84 from June 2026. Investors who bought $1,000 worth of Teradyne’s shares 5 years ago would now be looking at an investment worth $2,811.

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