Allegro MicroSystems, IPG Photonics, and Nova Surge as Trump Signals Iran Peace Deal; What You Need to Know
U.S. chip stocks rallied in afternoon trading after President Donald Trump called off planned military strikes on Iran and hinted that a peace deal could be finalized over the weekend, easing geopolitical tensions that had weighed on the sector.
Intel added a second tailwind after Bank of America double-upgraded the stock from underperform to buy, citing improved demand at domestic foundries. War-driven inflation had pushed Treasury yields higher, compressing valuations on capital-intensive chip names. The prospect of de-escalation now relieves some of that rate pressure.
Separately, the potential reopening of the Strait of Hormuz could unclog chemical and specialty-gas supply chains that semiconductor fabrication depends on. Oil falling back toward $87 a barrel and the 10-year yield dropping to 4.47% would ease the knock-on effects from both geopolitical and monetary headwinds.
The market often overreacts to news, and big price drops can create opportunities to buy high-quality stocks. The following names saw notable moves:
Nova Ltd. shares are extremely volatile and have posted 37 moves greater than 5% over the past year. In that context, today's advance signals the market views the Iran news as meaningful but not fundamentally altering the business outlook. The previous big swing came just one day ago, when the stock gained 8% amid a broader Nasdaq rebound as Trump's peace deal announcement released the rate pressure that had weighed on the sector all week.
Semiconductor stocks trade at elevated multiples on future earnings, making them disproportionately sensitive to interest rates. Oil falling more than 3% and the 10-year Treasury yield dropping to 4.47% released the rate hike pressure that drove the sector's worst week since 2020. The structural AI demand story never broke: Intel's BofA double upgrade to $135 earlier in the day confirmed that hyperscalers are placing real production orders at domestic foundries, and AI infrastructure capex commitments remained intact.
Nova is up 67.7% since the beginning of the year, and at $582.65 per share, it has set a new 52-week high. Investors who bought $1,000 worth of Nova’s shares five years ago would now be looking at an investment worth $5,769.
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