What Happened?

A number of stocks fell in the afternoon session after negative news from a data center company and a significant sale of Nvidia shares by a major investor fueled a broader sell-off. 

The downturn in chip stocks followed an announcement from CoreWeave Inc that a data center delay would negatively affect its financial expectations, leading to a downgrade by JPMorgan Chase. This news created concern across the industry, weighing on other chipmakers including ARM Holdings, Micron Technology, and Lam Research. Further pressure came as the technology-heavy Nasdaq Composite index fell, with companies like Nvidia dropping after reports that SoftBank had sold its stake.

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 MACOM (NASDAQ: MTSI) fell 5.2%. Is now the time to buy MACOM? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Semtech (NASDAQ: SMTC) fell 3.7%. Is now the time to buy Semtech? Access our full analysis report here, it’s free for active Edge members.
• Processors and Graphics Chips company Allegro MicroSystems (NASDAQ: ALGM) fell 4.8%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company FormFactor (NASDAQ: FORM) fell 3%. Is now the time to buy FormFactor? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Applied Materials (NASDAQ: AMAT) fell 2.8%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free for active Edge members.

Zooming In On MACOM (MTSI)

MACOM’s shares are very volatile and have had 21 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 5 days ago when the stock gained 6.6% on the news that the company reported solid financial results for its third quarter and provided an optimistic forecast for the upcoming quarter. MACOM announced revenue of $261.2 million, a 30.1% increase year on year, meeting analyst expectations. The company's adjusted earnings per share of $0.94 also surpassed Wall Street's estimates. Looking ahead, the semiconductor supplier issued strong guidance for its fourth quarter, projecting revenue to be around $269 million. This forecast exceeded the consensus estimate, signaling to investors that the company's growth was expected to continue. The combination of solid current-quarter results and a robust outlook fueled positive sentiment for the stock.

MACOM is up 31% since the beginning of the year, and at $169.73 per share, it is trading close to its 52-week high of $178.42 from November 2025. Investors who bought $1,000 worth of MACOM’s shares 5 years ago would now be looking at an investment worth $4,050.

The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.