What happened?
A number of stocks jumped in the afternoon session after major artificial intelligence deals and landmark financing agreements reinforced investor confidence in sustained technological demand as reported by AP News.
Market sentiment received a major boost following news that Broadcom obtained $63 billion in bank financing to develop proprietary artificial intelligence chips for Anthropic.
The massive commitment, paired with Anthropic filing for an initial public offering and Meta launching an equity offering, signaled to Wall Street that capital expenditure across the technology landscape remains robust. For chipmakers and hardware designers, these multi-billion-dollar transactions demonstrate that major tech players continue to channel enormous financial resources into specialized infrastructure.
Rather than slowing down, corporate appetite for computing power is accelerating, helping lift semiconductor shares and providing essential support to broader equity benchmarks such as the S&P 500.
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:
- Processors and graphics chips company Intel (NASDAQ: INTC) jumped 4.1%. Is now the time to buy Intel? Access our full analysis report here, it’s free.
- Analog semiconductors company Microchip Technology (NASDAQ: MCHP) jumped 3.9%. Is now the time to buy Microchip Technology? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Marvell Technology (NASDAQ: MRVL) jumped 4.1%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Analog semiconductors company onsemi (NASDAQ: ON) jumped 5.7%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
- Memory semiconductors company Seagate (NASDAQ: STX) jumped 5.5%. Is now the time to buy Seagate? Access our full analysis report here, it’s free.
Zooming in on onsemi (ON)
onsemi’s shares are extremely volatile and have had 35 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 20 days ago when the stock dropped 4.3% on the news that surging 10-year Treasury yields heightened borrowing cost concerns after the Federal Reserve’s September meeting minutes showed most officials expect another rate increase this year. CNBC reported that the 10-year Treasury yield climbed back above 5.3% on Wednesday and earlier touched its highest level since 2002. The minutes, released Wednesday, said most participants judged that another increase in the federal funds rate would likely be appropriate by year-end, while stressing that each meeting would depend on incoming data. The September vote to raise the benchmark rate by a quarter point was unanimous. Officials also discussed the rise in yields and tied it to expectations for higher Fed rates, the build-out in artificial intelligence, and solid economic growth. That mix weighs on semiconductor stocks. Chipmakers fund research and new factories over many years, so a higher Treasury yield increases the discount rate investors apply to those future earnings. The same minutes point to the AI build-out as one reason yields have climbed, which is the demand story these companies are selling into.
onsemi is up 37.5% since the beginning of the year, but at $77.97 per share, it is still trading 41.8% below its 52-week high of $133.93 from June 2026. Investors who bought $1,000 worth of onsemi’s shares 5 years ago would now be looking at an investment worth $1,750.
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