Applied Materials, Seagate, Photronics, Vishay Intertechnology, and Allegro MicroSystems stocks trade down, what you need to know
What happened?
A number of stocks fell in the morning session after Nvidia announced Chief Executive Jensen Huang resigned, deepening anxiety across the artificial-intelligence supply chain.
Nvidia announced Huang stepped down after 33 years, naming Chief Financial Officer Colette Kress interim CEO, CNBC reported. Huang's departure follows an emergency board review prompted by disclosures of two extramarital relationships, one of which was with a direct report, CNBC and The New York Times reported.
Adding sector pressure, cloud vendor Nebius tumbled roughly 16% on disappointing guidance, while higher crude prices and climbing Treasury yields weighed on tech multiples, CNBC reported.
According to CNBC, analysts warned that Huang's exit clouds memory and lithography order timelines for suppliers like Micron and ASML. A sudden leadership change at Nvidia could create unpredictability for ecosystem partners and portfolio investments that depend on strategic alignment with the company.
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 Applied Materials fell 3.1%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free.
- Memory semiconductors company Seagate fell 2.8%. Is now the time to buy Seagate? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Photronics fell 3.1%. Is now the time to buy Photronics? Access our full analysis report here, it’s free.
- Analog semiconductors company Vishay Intertechnology fell 3.3%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.
- Processors and graphics chips company Allegro MicroSystems fell 3.5%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free.
Zooming in on Allegro MicroSystems
Allegro MicroSystems’s shares are extremely volatile and have had 58 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 21 hours ago when the stock gained 5.2% on the news that specialized cloud provider CoreWeave lifted its annual sales forecast, alleviating concerns over cooling artificial intelligence hardware demand.
CoreWeave said in its quarterly press release that third-quarter revenue surged 168% year-over-year to $3.66 billion, while its order backlog expanded to $132.5 billion. The company raised its 2026 revenue outlook to between $13.0 billion and $13.3 billion, ahead of the $12.9 billion consensus compiled by Reuters, and lifted capital expenditure plans to between $37 billion and $39 billion.
The update alleviated credit market fears that debt-fueled data center buildouts would stall. In research cited by CNBC, JPMorgan credit analysts noted that expanding operating cash flow and a targeted inflection to adjusted profitability in 2028 resolve immediate funding overhangs.
With CoreWeave utilizing customer prepayments rather than new debt to fund expansion, hardware delivery schedules remain intact. For chipmakers, cloud capital spending directly underpins forward silicon demand. When infrastructure operators demonstrate that contracted leasing demand can fund physical deployment, it protects order books and pricing power across advanced processor and memory suppliers.
Allegro MicroSystems is up 18.5% since the beginning of the year, but at $31.90 per share, it is still trading 54.2% below its 52-week high of $69.62 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Allegro MicroSystems’s shares 5 years ago would now be looking at only $967.55.
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