What Happened?
A number of stocks jumped in the afternoon session after the Nasdaq rebounded, up 1.8%, as Trump's Iran peace deal announcement released the rate pressure that weighed on the sector all week.
Semiconductor stocks trade at elevated multiples on future earnings, making them disproportionately sensitive to interest rates. Oil falling more than 3% and the 10-year Treasury yield dropping to 4.47% released the rate hike pressure that drove the sector's worst week since 2020.
The structural AI demand story never broke: Intel's BofA double upgrade to $135 earlier in the day confirmed hyperscalers are placing real production orders at domestic foundries, and AI infrastructure capex commitments remained intact.
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 Amkor (NASDAQ: AMKR) jumped 7.2%. Is now the time to buy Amkor? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company IPG Photonics (NASDAQ: IPGP) jumped 4.6%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free.
- Analog Semiconductors company Sensata Technologies (NYSE: ST) jumped 5.4%. Is now the time to buy Sensata Technologies? Access our full analysis report here, it’s free.
Zooming In On Amkor (AMKR)
Amkor’s shares are extremely volatile and have had 49 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 3 days ago when the stock gained 5.4% as the broader semiconductor sector recovered from a sharp selloff during the previous trading session.
The decisive tone-setter was Nvidia CEO Jensen Huang, who described the previous week's selloff as a chance to "buy at a discount," adding that the AI revolution is still "at the beginning." That framing, was enough to stabilize sentiment in a sector that had erased $1 trillion in market cap in a single session.
Amkor is up 74.2% since the beginning of the year, and at $74.75 per share, it is trading close to its 52-week high of $78.10 from April 2026. Investors who bought $1,000 worth of Amkor’s shares 5 years ago would now be looking at an investment worth $3,169.
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