What happened?
A number of stocks jumped in the morning session after dip-buyers moved into beaten-down semiconductor and hardware names following the sector's steepest one-day rout in 19 months.
The turnaround gained traction after President Donald Trump wrote on Truth Social that he is 100% in favor of artificial intelligence infrastructure, calling data centers "GOLD" and pledging to help states expand capacity, in comments carried by CNBC. That endorsement eased worries ignited by Democratic midterm victories and calls for data-center expansion and buildout halts.
Although official data from the Bureau of Labor Statistics showed October nonfarm payrolls surged by 165,000—lifting Treasury yields and pressuring the Dow—chipmakers decoupled from broader macro concerns to retrace prior losses.
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:
- Analog semiconductors company Monolithic Power Systems (NASDAQ: MPWR) jumped 5.6%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Photronics (NASDAQ: PLAB) jumped 4%. Is now the time to buy Photronics? Access our full analysis report here, it’s free.
Zooming in on Monolithic Power Systems (MPWR)
Monolithic Power Systems’s shares are extremely volatile and have had 36 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 about 23 hours ago when the stock dropped 9% on the news that incoming Democratic senators called for brakes on the development of artificial intelligence data centers following midterm election results.
As reported by CNBC, the political rhetoric fueled a widespread sell-off across the chipmaking industry, where companies depend heavily on the rapid buildout of computing infrastructure.
Separately, Reuters reported that Micron has paused work on a planned $4.5 billion memory-chip plant in Taiwan amid an extended labor dispute, according to a Bloomberg report cited by Reuters. The pause adds uncertainty around Micron’s capacity expansion, but the report attributed it to labor negotiations—not the debate over U.S. data center construction. Calls to halt or slow AI data center construction directly threaten demand projections for high-performance semiconductor components and processing units.
Monolithic Power Systems is up 28.4% since the beginning of the year, but at $1,202 per share, it is still trading 28.9% below its 52-week high of $1,690 from June 2026. Investors who bought $1,000 worth of Monolithic Power Systems’s shares 5 years ago would now be looking at an investment worth $2,192.
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