What Happened?

A number of stocks jumped in the afternoon session after the Trump administration announced a plan to create a voluntary investment consortium targeting $4 trillion in funding for semiconductor supply chains, energy projects, and critical minerals. 

The initiative, an expansion of the 'Pax Silica' program launched in December 2025, aims to secure access to AI and chipmaking for the U.S. and its allies. According to reports, the U.S. government will contribute an initial $250 million toward the ambitious goal. This move signals strong government support for the domestic and allied chip industry, boosting investor confidence. The prospect of significant capital infusion into the sector could lead to the development of new manufacturing facilities, research advancements, and a more resilient global supply chain, benefiting chipmakers and related technology companies.

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 Entegris (NASDAQ: ENTG) jumped 4.6%. Is now the time to buy Entegris? Access our full analysis report here, it’s free.
• Analog Semiconductors company Texas Instruments (NASDAQ: TXN) jumped 2.8%. Is now the time to buy Texas Instruments? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Photronics (NASDAQ: PLAB) jumped 9.3%. Is now the time to buy Photronics? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company FormFactor (NASDAQ: FORM) jumped 9.4%. Is now the time to buy FormFactor? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Amkor (NASDAQ: AMKR) jumped 6.6%. Is now the time to buy Amkor? Access our full analysis report here, it’s free.

Zooming In On FormFactor (FORM)

FormFactor’s shares are extremely volatile and have had 38 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 dropped 4.2% on the news that federal prosecutors charged a Super Micro Computer co-founder with conspiring to smuggle billions of dollars in AI chips to China. 

The news of federal export control violations triggered a sharp selloff, with Super Micro's shares cratering over 28%. The charges created broader anxiety across the AI semiconductor industry, contributing to declines in other major chip stocks like AMD. This development exacerbated a wider downturn in the tech-heavy Nasdaq, as investors reacted to the serious allegations and the potential for stricter regulations on advanced technology exports.

FormFactor is up 77.6% since the beginning of the year, and at $105.10 per share, it is trading close to its 52-week high of $105.83 from February 2026. Investors who bought $1,000 worth of FormFactor’s shares 5 years ago would now be looking at an investment worth $2,478.

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