What Happened?
A number of stocks jumped in the afternoon session after President Trump announced Apple had agreed to design and manufacture chips with Intel in the United States, a foundry validation the market had been waiting on for over a year.
The deal served as a direct catalyst for Intel and lifted sentiment across the industry. Micron also added 7-8% after a coordinated wave of analyst price target hikes. Stifel, Wedbush, Deutsche Bank, and TD Cowen revised their models sharply higher reinforced by Apple CEO Tim Cook's acknowledgement that memory price increases have become unavoidable.
The macro backdrop also helped. The US and Iran released the text of a signed interim agreement extending the April ceasefire by 60 days, a development that Art Hogan of B Riley Wealth described as "usurping any negative sentiment brought about by a more hawkish Fed yesterday." Lower oil prices eased the inflation pressure that sent the market lower earlier in the week; for a sector carrying high multiples that compress when the risk-free rate rises, any relief on the rate-hike narrative matters.
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 Power Integrations (NASDAQ: POWI) jumped 6.5%. Is now the time to buy Power Integrations? Access our full analysis report here, it’s free.
- Processors and Graphics Chips company Lattice Semiconductor (NASDAQ: LSCC) jumped 6.3%. Is now the time to buy Lattice Semiconductor? Access our full analysis report here, it’s free.
- Analog Semiconductors company onsemi (NASDAQ: ON) jumped 5.9%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
Zooming In On Power Integrations (POWI)
Power Integrations’s shares are very volatile and have had 28 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 5.7% on the news that the Trump administration announced a new peace deal that would lead to the reopening of the Strait of Hormuz, signaling a potential recovery in the industrial and automotive end markets that analog chips are most directly tied to.
Unlike digital processors and AI chips, analog semiconductors convert real-world signals — temperature, pressure, speed, current — into data. Their customers are automakers, industrial equipment manufacturers, energy infrastructure operators, and factory automation providers. All of these end markets had slowed as supply chains stalled and capital spending was deferred after the Hormuz blockade began.
With the strait preparing to reopen and global industrial activity expected to recover, the order pipeline for analog makers begins to rebuild. The 10-year yield falling to its lowest level since mid-May added a macro re-rating on top of the underlying demand recovery as a cheaper rate environment makes the industrial capital expenditure that drives analog demand more financially viable.
Power Integrations is up 133% since the beginning of the year, and at $87.06 per share, it is trading close to its 52-week high of $87.07 from May 2026. Investors who bought $1,000 worth of Power Integrations’s shares 5 years ago would now be looking at an investment worth $1,105.
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