What Happened?
A number of stocks fell in the afternoon session after Kye-hyun, a former head of Samsung's semiconductor business, cast a shadow over the long-term outlook for memory chips, predicting that the current AI-driven "super cycle" could lose momentum by 2028, with aggressive expansion by Chinese chipmakers threatening to create a supply glut.
Seagate fell 2.9% and Western Digital fell 2.6% on the warning, with broader semis like Micron also softening. The macro layer made it worse. Memory and component makers trade like long-duration growth assets, most of their value is in future AI-data-center demand. When 30-year yields rip, as observed during the day, the discount rate applied to those future cash flows mechanically increases, and price-to-earnings multiples compress.
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:
- Electronic Components company Advanced Energy (NASDAQ: AEIS) fell 2.3%. Is now the time to buy Advanced Energy? Access our full analysis report here, it’s free.
- Electronic Components company Vishay Precision (NYSE: VPG) fell 6.5%. Is now the time to buy Vishay Precision? Access our full analysis report here, it’s free.
- Electronic Components company Bel Fuse (NASDAQ: BELFA) fell 3.7%. Is now the time to buy Bel Fuse? Access our full analysis report here, it’s free.
Zooming In On Vishay Precision (VPG)
Vishay Precision’s shares are extremely volatile and have had 34 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 biggest move we wrote about over the last year was 3 months ago when the stock gained 6.2% on the news that the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices.
This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom.
These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
Vishay Precision is up 152% since the beginning of the year, and at $98.84 per share, it is trading close to its 52-week high of $105.21 from May 2026. Investors who bought $1,000 worth of Vishay Precision’s shares 5 years ago would now be looking at an investment worth $2,965.
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