What Happened?
A number of stocks jumped in the morning session after the semiconductor sector continued to rebound from the previous week's sharp selloff amid bullish Wall Street updates.
Broadcom (AVGO) gained about 4.2% after it disclosed in an 8-K that it signed multi-year agreements with Apple through 2031 to supply custom ASIC silicon.
Separately, bullish memory notes landed: UBS raised its Q3 DDR contract-pricing forecast to +32% quarter-on-quarter (from +17%) and reiterated DRAM undersupply "until at least 2Q28"; Citi added an upside catalyst watch on Micron; and BofA reiterated Buy ($1,550), arguing memory is "roughly 35-40% of cloud AI capex… yet memory stocks trade at sub-par 10x forward PE." Goldman's trading desk flagged an oversold buy-the-dip setup after momentum factors fell 24% from their peak, the largest drawdown since Q1 2023.
This was a sector recovery on top of a technical bounce and cheaper oil after OPEC+ lifted output. Two events reinforced it as SK Hynix's ~$28bn Nasdaq listing the previous week and Samsung's earnings later in the week kept the "memory super-cycle" story in the headlines.
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 Himax (NASDAQ: HIMX) jumped 8.8%. Is now the time to buy Himax? Access our full analysis report here, it’s free.
- Memory Semiconductors company Western Digital (NASDAQ: WDC) jumped 8.8%. Is now the time to buy Western Digital? Access our full analysis report here, it’s free.
- Analog Semiconductors company onsemi (NASDAQ: ON) jumped 7.1%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
Zooming In On Himax (HIMX)
Himax’s shares are extremely volatile and have had 41 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 9% on the news that the semiconductor sector pulled back amid fears that AI-driven chip demand may be cooling.
The broader Philadelphia Semiconductor Index plunged over 7%, dragging down chipmakers. The negative sentiment was amplified by a warning from a Citi analyst who questioned whether large cloud platforms would continue their high rate of spending on AI infrastructure if they could not show investors the cost was generating returns.
Additionally, reports of Meta's plan to sell access to its AI computing power sparked fears of future overcapacity in the industry. For two years the sector traded on an assumption of an insatiable GPU and memory shortage. If Meta, which guided to as much as $145 billion of capex this year, has enough spare capacity to lease it out, the market reads that as a signal hyperscalers may have over-built, meaning future orders for GPUs, HBM and NAND could shrink. A secondary catalyst pressured the Koreans specifically: reports that Apple was in talks to source chips from two Chinese suppliers, raising competitive and pricing fears. Underlying all of it is profit-taking.
Himax is up 68.8% since the beginning of the year, but at $14.40 per share, it is still trading 40.5% below its 52-week high of $24.19 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Himax’s shares 5 years ago would now be looking at only $932.92.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
