What Happened?

A number of stocks jumped in the afternoon session after Nvidia announced a strategic partnership and a $2 billion investment in fellow chipmaker Marvell Technology. 

Following the news, Marvell's stock surged 6.9%, while Nvidia's shares also climbed, providing a lift to the broader semiconductor sector. The collaboration aims to connect Marvell to NVIDIA's AI ecosystem through its NVLink Fusion technology, giving customers more flexibility in developing advanced infrastructure. This significant investment by the AI chip leader stressed the continued rapid expansion and high-stakes competition within the artificial intelligence hardware industry, boosting investor confidence across the sector.

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 Microchip Technology (NASDAQ: MCHP) jumped 4.4%. Is now the time to buy Microchip Technology? Access our full analysis report here, it’s free.
• Analog Semiconductors company Monolithic Power Systems (NASDAQ: MPWR) jumped 5.4%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free.
• Analog Semiconductors company onsemi (NASDAQ: ON) jumped 6.5%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
• Analog Semiconductors company Vishay Intertechnology (NYSE: VSH) jumped 3.7%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Amtech (NASDAQ: ASYS) jumped 2.9%. Is now the time to buy Amtech? Access our full analysis report here, it’s free.

Zooming In On onsemi (ON)

onsemi’s shares are very volatile and have had 29 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 4 days ago when the stock dropped 4.7% after China initiated a trade barrier investigation against the United States, escalating trade tensions. 

China's Ministry of Commerce announced it would begin two probes into U.S. trade practices, alleging they have disrupted global supply chains. The move was seen as a direct retaliation to tariff investigations started by the U.S. administration earlier in the month. One Chinese investigation will specifically examine U.S. policies that restrict the export of advanced technology products to China and limit bilateral investment in key sectors. This action raises concerns about further trade restrictions and potential impacts on U.S. tech companies that have significant business operations and sales in the Chinese market. 

Adding to the concern, geopolitical tensions in the Middle East were projected to drive supply chain disruptions for key materials. The conflict reportedly tightened the global supply of helium, an essential element used in the manufacturing of semiconductor chips. This scarcity is driving up the price of helium, creating production challenges and increasing costs for chipmakers. The situation introduces another layer of uncertainty for the tech sector, as rising energy prices linked to the conflict stoked broader inflation concerns, potentially impacting consumer demand and business investment in technology.

onsemi is up 6.7% since the beginning of the year, but at $60.47 per share, it is still trading 16.3% below its 52-week high of $72.21 from February 2026. Investors who bought $1,000 worth of onsemi’s shares 5 years ago would now be looking at an investment worth $1,454.

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