What Happened?
A number of stocks jumped in the afternoon session after the Trump administration announced a new peace deal that would lead to the reopening of the Strait of Hormuz, signaling a potential recovery in the industrial and automotive end markets that analog chips are most directly tied to.
Unlike digital processors and AI chips, analog semiconductors convert real-world signals — temperature, pressure, speed, current — into data. Their customers are automakers, industrial equipment manufacturers, energy infrastructure operators, and factory automation providers. All of these end markets had slowed as supply chains stalled and capital spending was deferred after the Hormuz blockade began.
With the strait preparing to reopen and global industrial activity expected to recover, the order pipeline for analog makers begins to rebuild. The 10-year yield falling to its lowest level since mid-May added a macro re-rating on top of the underlying demand recovery as a cheaper rate environment makes the industrial capital expenditure that drives analog demand more financially viable.
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 Impinj (NASDAQ: PI) jumped 4.8%. Is now the time to buy Impinj? Access our full analysis report here, it’s free.
- Analog Semiconductors company onsemi (NASDAQ: ON) jumped 5.1%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
Zooming In On onsemi (ON)
onsemi’s shares are very volatile and have had 28 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 4 days ago when the stock gained 4.1% on the news that the Nasdaq rebounded, up 1.8%, as Trump's Iran peace deal announcement released the rate pressure that weighed on the sector all week.
Semiconductor stocks trade at elevated multiples on future earnings, making them disproportionately sensitive to interest rates. Oil falling more than 3% and the 10-year Treasury yield dropping to 4.47% released the rate hike pressure that drove the sector's worst week since 2020. The structural AI demand story never broke: Intel's BofA double upgrade to $135 earlier in the day confirmed hyperscalers are placing real production orders at domestic foundries, and AI infrastructure capex commitments remained intact.
onsemi is up 118% since the beginning of the year, and at $123.81 per share, it is trading close to its 52-week high of $133.93 from June 2026. Investors who bought $1,000 worth of onsemi’s shares 5 years ago would now be looking at an investment worth $3,307.
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 $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
