What happened?
A number of stocks jumped in the morning session after dip-buyers moved into beaten-down semiconductor and hardware names following the sector's steepest one-day rout in 19 months.
The turnaround gained traction after President Donald Trump wrote on Truth Social that he is 100% in favor of artificial intelligence infrastructure, calling data centers "GOLD" and pledging to help states expand capacity, in comments carried by CNBC. That endorsement eased worries ignited by Democratic midterm victories and calls for data-center expansion and buildout halts.
Although official data from the Bureau of Labor Statistics showed October nonfarm payrolls surged by 165,000—lifting Treasury yields and pressuring the Dow—chipmakers decoupled from broader macro concerns to retrace prior losses.
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:
- Processors and graphics chips company Allegro MicroSystems (NASDAQ: ALGM) jumped 3.6%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company IPG Photonics (NASDAQ: IPGP) jumped 3.5%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free.
- Processors and graphics chips company Lattice Semiconductor (NASDAQ: LSCC) jumped 5.9%. Is now the time to buy Lattice Semiconductor? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Entegris (NASDAQ: ENTG) jumped 2.9%. Is now the time to buy Entegris? Access our full analysis report here, it’s free.
- Processors and graphics chips company Broadcom (NASDAQ: AVGO) jumped 3.4%. Is now the time to buy Broadcom? Access our full analysis report here, it’s free.
Zooming in on Lattice Semiconductor (LSCC)
Lattice Semiconductor’s shares are extremely volatile and have had 48 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 about 23 hours ago when the stock dropped 9% on the news that incoming Democratic senators called for brakes on the development of artificial intelligence data centers following midterm election results.
As reported by CNBC, the political rhetoric fueled a widespread sell-off across the chipmaking industry, where companies depend heavily on the rapid buildout of computing infrastructure.
Separately, Reuters reported that Micron has paused work on a planned $4.5 billion memory-chip plant in Taiwan amid an extended labor dispute, according to a Bloomberg report cited by Reuters. The pause adds uncertainty around Micron’s capacity expansion, but the report attributed it to labor negotiations—not the debate over U.S. data center construction. Calls to halt or slow AI data center construction directly threaten demand projections for high-performance semiconductor components and processing units.
Lattice Semiconductor is up 33.8% since the beginning of the year, but at $105.27 per share, it is still trading 32.2% below its 52-week high of $155.27 from June 2026. Investors who bought $1,000 worth of Lattice Semiconductor’s shares 5 years ago would now be looking at an investment worth $1,258.
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