What happened?

A number of stocks jumped in the afternoon session after semiconductor and hardware shares mounted a synchronized rebound from the sharp post-election slump tied to worries over future artificial intelligence data center construction.

CNBC reported that investors reassessed that buildout once Democrats won control of Congress, and that technology shares recovered on Monday, with the S&P 500 tech sector up 2% in early trading. JPMorgan told CNBC it does not see artificial intelligence as a continued sell, and that a steadier technology tape would make the spending upcycle look more sustainable. The major indexes were up roughly 2%, so a move of 3% to 4% mostly tracks that wider rebound. The larger gains in this group sit on top of it, including double-digit moves in Monolithic Power, Semtech, and Entegris.

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:

• Semiconductor manufacturing company Semtech (NASDAQ: SMTC) jumped 13.1%. Is now the time to buy Semtech? Access our full analysis report here, it’s free.
• Semiconductor manufacturing company Entegris (NASDAQ: ENTG) jumped 11.8%. Is now the time to buy Entegris? Access our full analysis report here, it’s free.
• Analog semiconductors company Monolithic Power Systems (NASDAQ: MPWR) jumped 14%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free.
• Processors and graphics chips company Broadcom (NASDAQ: AVGO) jumped 9.2%. Is now the time to buy Broadcom? Access our full analysis report here, it’s free.
• Semiconductor manufacturing company Applied Materials (NASDAQ: AMAT) jumped 11.7%. Is now the time to buy Applied Materials? 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 37 moves greater than 5% over the last year. But moves this big are rare even for Monolithic Power Systems and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 5.6% on the news that 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.

Monolithic Power Systems is up 45.2% since the beginning of the year, but at $1,360 per share, it is still trading 19.5% 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 $2,457.

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