What Happened?

A number of stocks fell in the afternoon session after surging 10-year Treasury yields heightened borrowing cost concerns after the Federal Reserve’s September meeting minutes showed most officials expect another rate increase this year. CNBC reported that the 10-year Treasury yield climbed back above 5.3% on Wednesday and earlier touched its highest level since 2002. The minutes, released Wednesday, said most participants judged that another increase in the federal funds rate would likely be appropriate by year-end, while stressing that each meeting would depend on incoming data. The September vote to raise the benchmark rate by a quarter point was unanimous. Officials also discussed the rise in yields and tied it to expectations for higher Fed rates, the build-out in artificial intelligence, and solid economic growth. That mix weighs on semiconductor stocks. Chipmakers fund research and new factories over many years, so a higher Treasury yield increases the discount rate investors apply to those future earnings. The same minutes point to the AI build-out as one reason yields have climbed, which is the demand story these companies are selling into.

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 onsemi (NASDAQ: ON) fell 4.3%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
• Analog Semiconductors company Sensata Technologies (NYSE: ST) fell 4.1%. Is now the time to buy Sensata Technologies? Access our full analysis report here, it’s free.
• Analog Semiconductors company Texas Instruments (NASDAQ: TXN) fell 3.5%. Is now the time to buy Texas Instruments? Access our full analysis report here, it’s free.
• Processors and Graphics Chips company Allegro MicroSystems (NASDAQ: ALGM) fell 4.6%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free.
• Analog Semiconductors company Power Integrations (NASDAQ: POWI) fell 4.8%. Is now the time to buy Power Integrations? Access our full analysis report here, it’s free.

Zooming In On Power Integrations (POWI)

Power Integrations’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 5 days ago when the stock gained 5.8% on the news that weaker-than-expected U.S. employment data cooled Treasury yields, easing interest rate pressure. The Bureau of Labor Statistics reported that nonfarm payrolls increased by 29,000 in September, falling short of the 84,000 projected by economists polled by Dow Jones, while the unemployment rate rose to 4.2%. For the broader group, softer hiring eases interest-rate pressure on high-multiple growth equities by pulling borrowing costs lower. However, further deceleration in the labor market risks dampening cyclical end-market demand across industrial and automotive chip channels. Semiconductor valuations expand when falling yields reduce the discount rate on long-duration earnings, provided enterprise infrastructure spending does not deteriorate.

Power Integrations is up 37.5% since the beginning of the year, but at $51.28 per share, it is still trading 41.3% below its 52-week high of $87.35 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Power Integrations’s shares 5 years ago would now be looking at only $512.19.

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.