What happened?

A number of stocks jumped in the afternoon session after semiconductor and hardware shares mounted a synchronized rebound from the sharp post-election slump tied to worries over future artificial intelligence data center construction.

CNBC reported that investors reassessed that buildout once Democrats won control of Congress, and that technology shares recovered on Monday, with the S&P 500 tech sector up 2% in early trading. JPMorgan told CNBC it does not see artificial intelligence as a continued sell, and that a steadier technology tape would make the spending upcycle look more sustainable. The major indexes were up roughly 2%, so a move of 3% to 4% mostly tracks that wider rebound. The larger gains in this group sit on top of it, including double-digit moves in Monolithic Power, Semtech, and Entegris.

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 Lam Research (NASDAQ: LRCX) jumped 9.4%. Is now the time to buy Lam Research? Access our full analysis report here, it’s free.
• Semiconductor manufacturing company Marvell Technology (NASDAQ: MRVL) jumped 10%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
• Analog semiconductors company onsemi (NASDAQ: ON) jumped 9.1%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
• Memory semiconductors company Seagate (NASDAQ: STX) jumped 10.7%. Is now the time to buy Seagate? Access our full analysis report here, it’s free.
• Memory semiconductors company Western Digital (NASDAQ: WDC) jumped 10.6%. Is now the time to buy Western Digital? Access our full analysis report here, it’s free.

Zooming in on Seagate (STX)

Seagate’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. But moves this big are rare even for Seagate and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 4 days ago when the stock dropped 14.8% 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.

Seagate is up 77.6% since the beginning of the year, but at $510.73 per share, it is still trading 53.3% below its 52-week high of $1,094 from June 2026. Investors who bought $1,000 worth of Seagate’s shares 5 years ago would now be looking at an investment worth $5,143.

ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.

These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.