Teradyne Inc. shares fell 3.9% on Friday after Baird analyst Quinn Fredrickson downgraded the stock from Outperform to Neutral and set a $420 price target. Baird cited limited near-term catalysts, valuation concerns, rising interest rates, data-center challenges and questions about the sustainability of AI and hyperscaler capital-expenditure growth. Teradyne’s strong performance this year has been driven by enthusiasm over merchant GPU market-share gains, but Baird said the related catalyst appears reflected in the stock. Initial merchant GPU orders shipped in the second quarter, with revenue expected to reach $50 million in 2026 and approximately $600 million over the next several years. Baird sees Silicon Photonics and co-packaged optics as the next major catalysts, although their timing is expected to favor 2028 and 2029. Compute is unlikely to produce material upside in the second half of 2026 because of the timing of program ramps at Teradyne’s key customers.