What happened?
A number of stocks jumped in the afternoon session after major artificial intelligence deals and landmark financing agreements reinforced investor confidence in sustained technological demand as reported by AP News.
Market sentiment received a major boost following news that Broadcom obtained $63 billion in bank financing to develop proprietary artificial intelligence chips for Anthropic.
The massive commitment, paired with Anthropic filing for an initial public offering and Meta launching an equity offering, signaled to Wall Street that capital expenditure across the technology landscape remains robust. For chipmakers and hardware designers, these multi-billion-dollar transactions demonstrate that major tech players continue to channel enormous financial resources into specialized infrastructure.
Rather than slowing down, corporate appetite for computing power is accelerating, helping lift semiconductor shares and providing essential support to broader equity benchmarks such as the S&P 500.
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 Western Digital (NASDAQ: WDC) jumped 8.1%. Is now the time to buy Western Digital? Access our full analysis report here, it’s free.
- Processors and graphics chips company Allegro MicroSystems (NASDAQ: ALGM) jumped 6.4%. Is now the time to buy Allegro MicroSystems? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Amtech (NASDAQ: ASYS) jumped 5.1%. Is now the time to buy Amtech? Access our full analysis report here, it’s free.
- Semiconductor manufacturing company Teradyne (NASDAQ: TER) jumped 5.6%. Is now the time to buy Teradyne? Access our full analysis report here, it’s free.
Zooming in on Western Digital (WDC)
Western Digital’s shares are extremely volatile and have had 79 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 about 22 hours ago when the stock gained 5.2% on the news that Bank of America projected that memory chip supplies would remain tight through 2028 due to expanding artificial intelligence demand. Investors anticipated prolonged pricing power and high factory utilization. CNBC explained that these supply constraints reflect wider pressures across the entire semiconductor ecosystem. Industry expenditure on semiconductor fabrication equipment is projected to exceed $200 billion in 2027, as surging demand outpaces clean-room capacity and critical parts availability, according to CNBC. Because expanding advanced fabrication facilities requires extensive lead times, CNBC highlighted that memory producers are positioned to benefit heavily from this sustained market tightness.
Western Digital is up 103% since the beginning of the year, but at $381.17 per share, it is still trading 48.9% below its 52-week high of $746.23 from June 2026. Investors who bought $1,000 worth of Western Digital’s shares 5 years ago would now be looking at an investment worth $6,870.
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