What Happened?

A number of stocks fell in the morning session after markets became increasingly wary of high valuations following a significant AI-driven rally. The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. 

A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector. Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years. Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.

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:

• Electronic Components & Manufacturing company TTM Technologies (NASDAQ: TTMI) fell 4.9%. Is now the time to buy TTM Technologies? Access our full analysis report here, it’s free for active Edge members.
• Hardware & Infrastructure company Super Micro (NASDAQ: SMCI) fell 4.3%. Is now the time to buy Super Micro? Access our full analysis report here, it’s free for active Edge members.
• Hardware & Infrastructure company IonQ (NYSE: IONQ) fell 4.7%. Is now the time to buy IonQ? Access our full analysis report here, it’s free for active Edge members.
• Terrestrial Telecommunication Services company Lumen (NYSE: LUMN) fell 4.6%. Is now the time to buy Lumen? Access our full analysis report here, it’s free for active Edge members.
• Satellite Telecommunication Services company Globalstar (NASDAQ: GSAT) fell 3.4%. Is now the time to buy Globalstar? Access our full analysis report here, it’s free for active Edge members.

Zooming In On TTM Technologies (TTMI)

TTM Technologies’s shares are very volatile and have had 26 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 4 days ago when the stock gained 5.1% on the news that the company reported strong third-quarter results that surpassed analyst expectations on both revenue and earnings. The electronics manufacturer announced that its net sales reached $752.7 million, a 22% increase compared to the same period in the previous year. TTM also reported a record non-GAAP net income of $71.0 million, or $0.67 per diluted share. The company noted strong demand in its Data Center Computing and Networking markets, which was largely driven by generative AI needs. Additionally, it saw double-digit growth in its Medical, Industrial, and Aerospace and Defense sectors. Following the strong performance, the company projected its fourth-quarter net sales to be between $730 million and $770 million. The positive results also led analysts at Needham to reaffirm a "Buy" rating on the stock while raising the price target to $77.00.

TTM Technologies is up 174% since the beginning of the year, and at $67.34 per share, it is trading close to its 52-week high of $69.87 from November 2025. Investors who bought $1,000 worth of TTM Technologies’s shares 5 years ago would now be looking at an investment worth $5,651.

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