What Happened?
A number of stocks fell in the morning session after the 30-year U.S. Treasury yield hit a 19-year high and oil stayed elevated as a window for a U.S.–Iran deal closed without a breakthrough, a CNBC report revealed.
Deutsche Bank’s Jim Reid wrote in a note (reported by CNBC) that “with little sign of a U.S.–Iran deal, investors priced in a more extended closure of the Strait of Hormuz and a longer stretch of higher oil.” That is a problem for chip stocks twice over: it lifts the discount rate applied to future earnings, and it raises the cost of financing the same data-center buildout those earnings depend on. Carl Weinberg, founder of High Frequency Economics, told CNBC’s “Squawk Box Europe” that AI infrastructure borrowing is competing with governments for the same pool of savings and helping push bond yields higher, a loop that then feeds back into lower chip valuations.
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 Marvell Technology (NASDAQ: MRVL) fell 9.4%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Analog Semiconductors company Vishay Intertechnology (NYSE: VSH) fell 10.2%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.
- Processors and Graphics Chips company Allegro MicroSystems (NASDAQ: ALGM) fell 9.8%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free.
Zooming In On Vishay Intertechnology (VSH)
Vishay Intertechnology’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. But moves this big are rare even for Vishay Intertechnology and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 8.8% on the news that the company reported mixed second-quarter results, where a miss on revenue overshadowed an earnings beat and strong forward guidance.
The semiconductor manufacturer posted second-quarter revenue of $888.6 million, which fell short of analyst expectations. This miss appeared to weigh on investor sentiment, even though other parts of the report were positive. The company's adjusted earnings of $0.19 per share surpassed the consensus estimate of $0.14. Furthermore, Vishay provided an optimistic outlook for its third quarter, forecasting revenue of $960 million at the midpoint, which was ahead of analyst predictions.
Vishay Intertechnology is up 112% since the beginning of the year, but at $32.43 per share, it is still trading 49.3% below its 52-week high of $63.97 from June 2026. Investors who bought $1,000 worth of Vishay Intertechnology’s shares 5 years ago would now be looking at an investment worth $1,470.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
