What Happened?

A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks. 

The main story? Investors are cashing in on a good run and feeling a bit cautious. After a fantastic run, many of those high-flying AI and technology stocks saw investors take profits: selling shares to lock in their gains. This is often called a "market rotation." Money is moving out of the red-hot tech sector (which some worry has become too expensive) and into other parts of the market that investors may currently deem more stable or reasonably-priced. 

There's a secondary reason for the cautious mood: The long government shutdown came to an end. Though it's typically interpreted as good news, it also means a flood of delayed economic reports will be released. For weeks, investors were "flying blind" without key updates on the economy's health, like inflation data and the jobs report. In typical "sell the news" fashion, investors may also be taking profits and selling in anticipation that the new data would potentially give the Federal Reserve reasons to slow or even pause future rate cuts.

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:

• Renewable Energy company Array (NASDAQ: ARRY) fell 7.7%. Is now the time to buy Array? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components company Bel Fuse (NASDAQ: BELFA) fell 6.7%. Is now the time to buy Bel Fuse? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components company Vicor (NASDAQ: VICR) fell 5.6%. Is now the time to buy Vicor? Access our full analysis report here, it’s free for active Edge members.
• Electrical Systems company Sanmina (NASDAQ: SANM) fell 10.9%. Is now the time to buy Sanmina? Access our full analysis report here, it’s free for active Edge members.
• Aerospace company Rocket Lab (NASDAQ: RKLB) fell 9.3%. Is now the time to buy Rocket Lab? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Sanmina (SANM)

Sanmina’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Sanmina and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock gained 22.7% on the news that the company was seen as a key beneficiary of a major partnership announced between Advanced Micro Devices (AMD) and OpenAI. The market reacted positively after investors connected the deal to Sanmina's pending acquisition of a data center infrastructure manufacturing business from AMD. That agreement would make Sanmina a key U.S.-based manufacturing partner for AMD's new products. The partnership involved OpenAI's commitment to purchase a significant amount of AMD's graphics processing units (GPUs). Investors speculated that Sanmina could benefit if it was commissioned to build the server racks containing AMD's chips for the project. An analyst from BofA Securities noted that the announcement was viewed as a positive for Sanmina, as it showed that AMD's chips were gaining traction in the market.

Sanmina is up 104% since the beginning of the year, but at $154.28 per share, it is still trading 13.2% below its 52-week high of $177.76 from November 2025. Investors who bought $1,000 worth of Sanmina’s shares 5 years ago would now be looking at an investment worth $4,782.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.