What Happened?
A number of stocks fell in the afternoon session after the midday Apache helicopter incident over the Strait of Hormuz removed the stable macro backdrop the semiconductor sector needed to extend its recovery.
US Central Command confirmed an American Apache helicopter had gone down near the coast of Oman, and President Trump said the US "must respond" to what he described as an Iranian attack over the Strait of Hormuz. Chips are acutely sensitive to the inflation and rate environment and any development that re-accelerates oil prices keeps the 10-year yield elevated and compresses the high multiples the sector carries. The 10-year was already at 4.53%, and rate-hike probability for year-end already exceeded 50% before this headline.
The underlying concerns from the previous week's rout including Broadcom's cautious AI guidance, a memory chip glut, and the May jobs report pushing yields higher, hadn't resolved. The helicopter incident renewed geopolitical uncertainty just as the bounce was consolidating, pulling the sector back before the CPI reading later in the week.
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 Skyworks Solutions (NASDAQ: SWKS) fell 3.3%. Is now the time to buy Skyworks Solutions? Access our full analysis report here, it’s free.
- Memory Semiconductors company Western Digital (NASDAQ: WDC) fell 1.7%. Is now the time to buy Western Digital? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Teradyne (NASDAQ: TER) fell 3%. Is now the time to buy Teradyne? Access our full analysis report here, it’s free.
Zooming In On Skyworks Solutions (SWKS)
Skyworks Solutions’s shares are quite volatile and have had 19 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 1 day ago when the stock gained 6.5% on the news that the broader semiconductor sector recovered from a sharp selloff during the previous trading session.
The decisive tone-setter was Nvidia CEO Jensen Huang, who described the previous week's selloff as a chance to "buy at a discount," adding that the AI revolution is still "at the beginning." That framing, was enough to stabilize sentiment in a sector that had erased $1 trillion in market cap in a single session.
Skyworks Solutions is up 11.8% since the beginning of the year, but at $72.01 per share, it is still trading 13.7% below its 52-week high of $83.42 from May 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Skyworks Solutions’s shares 5 years ago would now be looking at only $427.30.
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