Teradyne (TER) shares tumbled 5.01% in pre-market trading on Tuesday, extending losses as a broad-based selloff swept through the semiconductor equipment sector. The decline came despite multiple top-tier investment banks recently raising their price targets on the stock, with UBS lifting its target to $500, JPMorgan to $450, and Goldman Sachs to $465.

The sector-wide pressure was triggered by renewed concerns over China's progress in semiconductor self-sufficiency, following reports that a Chinese state-backed company has begun mass production of domestically-developed immersion deep ultraviolet (DUV) lithography machines. While the initial output remains modest compared to industry leaders, the development stoked fears of long-term market share erosion for major equipment makers. Across the sector, ASML Holding fell over 3.7%, Applied Materials dropped more than 4%, Lam Research declined over 4%, and Amkor Technology tumbled over 8%.

Adding to the uncertainty, Teradyne is scheduled to report its second-quarter earnings after market close today, with consensus EPS expectations at $2.04. The company remains a global leader in automated test equipment and robotic solutions, with its semiconductor test division benefiting from AI-driven demand growth, but near-term sentiment has been overwhelmed by the sector-wide downturn.