What Happened?
A number of stocks fell in the afternoon session after the chief executives of Anthropic, OpenAI, and SpaceX publicly united to call for a deliberate slowdown in the development of frontier AI models over escalating safety risks. According to CNBC, the sell-off was triggered by an essay published over the weekend by Anthropic CEO Dario Amodei, who urged a more cautious approach to frontier model advancement and called for independent safety monitoring. In a rare show of unity among competitors, the proposal was quickly endorsed by OpenAI CEO Sam Altman and SpaceX CEO Elon Musk. The unexpected warnings sparked immediate concern across the market regarding the sustainability of the heavy capital spending that has driven tech valuations higher. In response to the developments, Citigroup shifted to a neutral stance on broader equity risk, cautioning investors that any institutional pause or deceleration in AI deployments could temper corporate earnings growth and pressure chipmakers reliant on rapid, unchecked infrastructure expansion.
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 (NASDAQ: AMAT) fell 6.4%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Lam Research (NASDAQ: LRCX) fell 7.7%. Is now the time to buy Lam Research? Access our full analysis report here, it’s free.
- Analog Semiconductors company Monolithic Power Systems (NASDAQ: MPWR) fell 7.1%. Is now the time to buy Monolithic Power Systems? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) fell 6.9%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Analog Semiconductors company MACOM (NASDAQ: MTSI) fell 11.9%. Is now the time to buy MACOM? Access our full analysis report here, it’s free.
Zooming In On MACOM (MTSI)
MACOM’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. But moves this big are rare even for MACOM and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 3.1% on the news that easing selling pressure, lower Treasury yields, and positive momentum from Asian markets boosted investor sentiment ahead of Nvidia's quarterly earnings and key inflation data. Shares of major chipmakers and data-storage companies, including Micron Technology, SanDisk, Western Digital, and Advanced Micro Devices, pushed higher to recover from sharp declines in the previous session. Broader sentiment across the technology sector was buoyed by falling U.S. Treasury yields and retreating oil prices, which help support valuations for high-growth industries. Per Reuters, investors are closely eyeing AI bellwether Nvidia's upcoming financial results for evidence that global demand for artificial intelligence infrastructure remains robust. Overnight gains in overseas semiconductor peers, such as Taiwan Semiconductor Manufacturing and SK Hynix, further supported the sector-wide rebound.
MACOM is up 38.9% since the beginning of the year, but at $242.96 per share, it is still trading 40.7% below its 52-week high of $409.68 from May 2026. Investors who bought $1,000 worth of MACOM’s shares 5 years ago would now be looking at an investment worth $3,875.
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