Applied Materials, Diodes, Marvell Technology, Applied Optoelectronics, and SK hynix stocks trade down, what you need to know
What happened?
A number of stocks fell in the morning session after accelerating annual wholesale inflation pushed Treasury yields higher as executive turmoil at Nvidia pressured chipmakers.
The U.S. Bureau of Labor Statistics reported that October’s producer price index rose 0.3% month on month. That was marginally below the 0.4% increase expected by economists polled by Dow Jones, CNBC reported. However, unadjusted final demand climbed 6.5% over the past twelve months, the fastest annual pace since November 2022, pushing the 10-year Treasury yield up nearly four basis points to 5.14%.
Northlight Asset Management Chief Investment Officer Chris Zaccarelli told CNBC that persistent price pressures keep the Federal Reserve on course to raise interest rates in December. When benchmark bond yields sit above 5%, elevated equity valuations face immediate discount-rate pressure.
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 5.6%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free.
- Analog semiconductors company Diodes fell 5.3%.
- Semiconductor manufacturing company Marvell Technology fell 6.5%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Applied Optoelectronics fell 8.3%.
- Memory semiconductors company SK hynix fell 5.2%.
Zooming in on Applied Optoelectronics
Applied Optoelectronics’s shares are extremely volatile and have had 137 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 1 day ago when the stock dropped 7.2% on the news that 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.
Applied Optoelectronics is up 20.3% since the beginning of the year, but at $47.64 per share, it is still trading 78.6% below its 52-week high of $223.10 from May 2026. Investors who bought $1,000 worth of Applied Optoelectronics’s shares 5 years ago would now be looking at an investment worth $7,888.
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