What Happened?
A number of stocks fell in the afternoon session after the U.S.-China summit concluded without any significant breakthroughs on semiconductor sales to the country.
Expectations had been building for a potential deal, particularly regarding Washington's authorization for Nvidia to export its H200 chips to China. However, the summit ended without a formal approval for the shipments from Beijing. This lack of progress disappointed investors who had hoped for a resolution. Adding to the negative sentiment, U.S. Trade Representative Jamieson Greer stated in an interview that semiconductors were not a primary focus during the talks between President Trump and Chinese leader Xi Jinping, dashing hopes for a near-term catalyst for the sector.
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 Teradyne (NASDAQ: TER) fell 3.8%. Is now the time to buy Teradyne? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Kulicke and Soffa (NASDAQ: KLIC) fell 3.3%. Is now the time to buy Kulicke and Soffa? Access our full analysis report here, it’s free.
- Analog Semiconductors company Impinj (NASDAQ: PI) fell 3.2%. Is now the time to buy Impinj? Access our full analysis report here, it’s free.
- Analog Semiconductors company Microchip Technology (NASDAQ: MCHP) fell 2.6%. Is now the time to buy Microchip Technology? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company IPG Photonics (NASDAQ: IPGP) fell 4.1%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free.
Zooming In On IPG Photonics (IPGP)
IPG Photonics’s shares are very volatile and have had 21 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 4.8% as President Trump landed in Beijing alongside Nvidia CEO Jensen Huang and Micron CEO Sanjay Mehrotra for a summit with President Xi Jinping, raising hopes that the two sides could reach a deal to ease chip export restrictions and stabilise rare earth supply chain, the two pressure points that have most constrained the sector.
Micron led the advance, with the broader Philadelphia Semiconductor Index building on its recent AI-driven momentum. Markets priced in higher odds of a U.S.-China tariff agreement by May 31, with speculation centred on a "small deal" , likely an extension of the 90-day tariff truce and some relief on rare earth export curbs that China has used as leverage. Analysts cautioned that a sweeping semiconductor-for-rare-earth equipment swap remained unlikely on national security grounds, but the mere presence of chip CEOs in the room at a presidential summit was enough to move the sector.
IPG Photonics is up 34.3% since the beginning of the year, but at $100.53 per share, it is still trading 34.7% below its 52-week high of $153.91 from February 2026. Despite the year-to-date gain, investors who bought $1,000 worth of IPG Photonics’s shares 5 years ago would now be looking at only $511.89.
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