Semtech, Photronics, Amkor, and Teradyne Shares Are Falling, What You Need To Know

What Happened?

A number of stocks fell in the morning session after a broader market rotation out of the technology sector led to profit-taking following a recent rally. 

The move was part of a wider trend that saw high-growth technology stocks fall, with the Nasdaq experiencing the sharpest decline among the major indices. Multiple reports indicated that traders were locking in profits, particularly from the artificial-intelligence trade, which had previously seen a strong run-up. This market action represented a shift in investor focus, as money moved out of tech. 

Defense stocks emerged as the primary beneficiary of this capital shift, surging after President Trump proposed a massive $1.5 trillion defense budget for 2027. Major contractors rallied on the news, with Northrop Grumman jumping over 10% and Lockheed Martin gaining nearly 8%, providing a counterbalance to the tech slump that kept the S&P 500 flat. The rotation into heavy industry was further supported by a stabilization in energy markets, as crude prices rebounded.

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 Semtech (NASDAQ:SMTC) fell 3.5%. Is now the time to buy Semtech? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Photronics (NASDAQ:PLAB) fell 7.6%. Is now the time to buy Photronics? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Amkor (NASDAQ:AMKR) fell 5.9%. Is now the time to buy Amkor? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Teradyne (NASDAQ:TER) fell 4.3%. Is now the time to buy Teradyne? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Photronics (PLAB)

Photronics’s shares are very volatile and have had 22 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 2 days ago when the stock gained 5.4% as investor optimism was bolstered by favorable analyst sentiment and positive news from the broader semiconductor sector. 

The positive mood around Photronics followed reports of growing optimism among analysts regarding the company's earnings prospects. This was reflected in upward revisions to its earnings per share estimates over the previous 30 days. Adding to the industry-wide sentiment, peer company Microchip Technology saw its shares climb after it announced that its revenue would significantly exceed its prior forecast. This news signaled potential strength within the overall semiconductor market, which likely lifted investor confidence in related stocks like Photronics.

Photronics is down 3.5% since the beginning of the year, and at $32.23 per share, it is trading 18.8% below its 52-week high of $39.67 from December 2025. Investors who bought $1,000 worth of Photronics’s shares 5 years ago would now be looking at an investment worth $2,812.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave.