What Happened?
A number of stocks jumped in the afternoon session after a broader market rally drove investor optimism in artificial intelligence and big tech stocks.
The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year. Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.
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 Analog Devices (NASDAQ:ADI) jumped 5.2%. Is now the time to buy Analog Devices? Access our full analysis report here, it’s free for active Edge members.
- Semiconductor Manufacturing company Applied Materials (NASDAQ:AMAT) jumped 3.5%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free for active Edge members.
- Semiconductor Manufacturing company KLA Corporation (NASDAQ:KLAC) jumped 2.8%. Is now the time to buy KLA Corporation? Access our full analysis report here, it’s free for active Edge members.
- Analog Semiconductors company Monolithic Power Systems (NASDAQ:MPWR) jumped 4.4%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free for active Edge members.
- Analog Semiconductors company onsemi (NASDAQ:ON) jumped 4.5%. Is now the time to buy onsemi? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Analog Devices (ADI)
Analog Devices’s shares are somewhat volatile and have had 10 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 biggest move we wrote about over the last year was 3 months ago when the stock gained 4.3% on the news that investor fears eased as President Trump softened his tone regarding trade relations with China. Following a sharp selloff late last week fueled by threats of an additional 100% tariff on Chinese goods, the president's more conciliatory weekend message that "it will all be fine" sparked a broad market rally. The semiconductor sector, which is particularly sensitive to international trade policies due to its global supply chains, was among the biggest beneficiaries of the improved sentiment. Chipmakers had posted significant declines during the previous week amid escalating tariff concerns. The reversal in tone helped these stocks recover a substantial portion of their recent losses as investors bought back into the sector, relieved that trade tensions might not escalate further.
Analog Devices is up 7.1% since the beginning of the year, and at $293.25 per share, has set a new 52-week high. Investors who bought $1,000 worth of Analog Devices’s shares 5 years ago would now be looking at an investment worth $1,964.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.