What Happened?
A number of stocks jumped in the afternoon session after the broader semiconductor sector recovered from a sharp selloff during the previous trading session.
The decisive tone-setter was Nvidia CEO Jensen Huang, who described the previous week's selloff as a chance to "buy at a discount," adding that the AI revolution is still "at the beginning." That framing, was enough to stabilize sentiment in a sector that had erased $1 trillion in market cap in a single session.
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 Texas Instruments (NASDAQ: TXN) jumped 2.9%. Is now the time to buy Texas Instruments? Access our full analysis report here, it’s free.
- Analog Semiconductors company Universal Display (NASDAQ: OLED) jumped 3.2%. Is now the time to buy Universal Display? Access our full analysis report here, it’s free.
Zooming In On Universal Display (OLED)
Universal Display’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 3.4% as risk-on sentiment returned on Iran peace progress as Treasury yields cooled.
Analog chips (Texas Instruments, Analog Devices, NXP, ON Semi, Microchip) are the workhorse semiconductors inside cars, industrial machinery, medical devices, and consumer electronics. They're tied to broad industrial and auto production, both of which rallied during the day.
Analog chip companies have been working through a two-year inventory correction, where customers like auto OEMs and industrial equipment makers over-ordered during the pandemic and have been drawing down ever since. When the economic outlook improves: Dow at 50,700, yields cooling, peace progress on the table, customers shift from drawing down inventory to placing fresh orders. That's the moment the cycle turns.
Universal Display is down 27.1% since the beginning of the year, and at $88.83 per share, it is trading 45% below its 52-week high of $161.44 from July 2025. Investors who bought $1,000 worth of Universal Display’s shares 5 years ago would now be looking at only $409.09.
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