Sandisk, Semtech, Penguin Solutions, Astera Labs, and Onto Innovation 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:

• Memory semiconductors company Sandisk fell 8.5%.
• Semiconductor manufacturing company Semtech fell 5.8%. Is now the time to buy Semtech? Access our full analysis report here, it’s free.
• Processors and graphics chips company Penguin Solutions fell 6.8%. Is now the time to buy Penguin Solutions? Access our full analysis report here, it’s free.
• Analog semiconductors company Astera Labs fell 6.9%.
• Semiconductor manufacturing company Onto Innovation fell 6%.

Zooming in on Sandisk

Sandisk’s shares are extremely volatile and have had 115 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.

Sandisk is up 210% since the beginning of the year, but at $852.31 per share, it is still trading 63.5% below its 52-week high of $2,335 from June 2026. Investors who bought $1,000 worth of Sandisk’s shares at the IPO in February 2025 would now be looking at an investment worth $23,679.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.