What Happened?
A number of stocks fell in the afternoon session after escalating geopolitical tensions in the Middle East sparked a surge in oil prices and stoked fears of a wider economic conflict, as Trump warned the conflict could last up to a month.
The sell-off was broad, with the Dow Jones Industrial Average falling by more than 1,000 points, while the S&P 500 and Nasdaq Composite each dropped over 2%. Investor anxiety centered on a conflict involving Iran, which reportedly led to the shutdown of the Strait of Hormuz, a critical channel for global oil shipping. The disruption sent oil prices soaring, with international benchmark Brent crude topping $84 a barrel. These higher energy costs are fueling concerns about worsening inflation, which could further pressure households and businesses, and investors are growing worried that a prolonged conflict could inflict sustained damage on the global economy.
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) fell 5.3%. Is now the time to buy Semtech? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Photronics (NASDAQ: PLAB) fell 5%. Is now the time to buy Photronics? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Nova (NASDAQ: NVMI) fell 4.4%. Is now the time to buy Nova? Access our full analysis report here, it’s free.
- Analog Semiconductors company Vishay Intertechnology (NYSE: VSH) fell 5.2%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.
Zooming In On Semtech (SMTC)
Semtech’s shares are extremely volatile and have had 42 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 27 days ago when the stock dropped 6.8% on the news that uncertainty increased over when key companies can resume large-scale sales of high-end artificial-intelligence chips to China.
The U.S. government reportedly extended its review of export license applications for AI hardware, such as Nvidia's H200 chips, on national security grounds. This delay created uncertainty for chipmakers and reportedly led some Chinese customers to postpone orders until clearer guidance was issued. While there were earlier signals that some shipments could restart, the extended review process stalled progress, weighing on the stock of major exporters who saw China as a significant market. The situation highlighted the ongoing geopolitical tensions impacting the semiconductor industry's global supply chain.
Semtech is up 19.8% since the beginning of the year, and at $90.15 per share, it is trading close to its 52-week high of $96.30 from March 2026. Investors who bought $1,000 worth of Semtech’s shares 5 years ago would now be looking at an investment worth $1,282.
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