Western Digital, Microchip Technology, and Seagate Shares Are Soaring, What You Need To Know
Western Digital, Microchip Technology, and Seagate Shares Are Soaring, What You Need To Know
Publish Date: 2026-06-08 13:42:00
Source Domain: stockstory.org
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:
Zooming In On Microchip Technology (MCHP)
Microchip Technology’s shares are quite volatile and have had 16 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 3 days ago when the stock dropped 6.4% on the news that the AVGO earnings overhang and the stronger-than-expected jobs report combined to drive one of the broadest global chip selloff of the year.
The damage spread globally: South Korea’s Kospi fell 5.5%, with Samsung down 6.4% and SK Hynix nearly 10%. European names followed: ASML fell 3.8% and Infineon lost more than 6%.
The mechanism is two-fold. Broadcom’s guidance miss reset expectations for the pace of hyperscaler AI chip spending, removing the sector’s most visible growth catalyst. The 172,000-payroll print then eliminated near-term rate cut hopes and introduced rate hike risk by year end per CME FedWatch. Semiconductor valuations, built on aggressive multi-year earnings assumptions, are acutely sensitive to these discount rate movements.
Microchip Technology is up 41.5% since the beginning of the year, but at $92.04 per share, it is still trading 10.6% below its 52-week high of $102.92 from May 2026….
