What Happened?
A number of stocks jumped in the afternoon session after Jensen Huang's (Nvidia's CEO) GTC Taipei keynote at Computex reframed how large and how long the AI chip cycle will run.
The first announcement — Vera Rubin entering full production — confirmed the next wave of data center AI compute is now locked in. Vera Rubin, Nvidia's successor to Blackwell, delivers a 10x reduction in inference token cost and requires 4x fewer GPUs to train the same models. Thousands of Nvidia engineers were involved in its development, and system builders already in full-scale production include Dell, HPE, Lenovo, Supermicro, and IBM. That list is a read-through for the entire AI supply chain: every name on it needs more servers, more memory, more optical connectivity, and more chip equipment.
The second announcement carried a different charge. Nvidia unveiled RTX Spark — an Arm-based AI PC chip co-developed with MediaTek — and Jensen Huang said Nvidia and Microsoft are going to "reinvent the PC." RTX Spark integrates a Blackwell GPU and a Grace CPU on a single package with 128GB of unified memory, capable of running 120-billion-parameter AI models locally without cloud connectivity. It launches later in the year on Windows PCs from Microsoft, Dell, HP, ASUS, Lenovo, and MSI.
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 IPG Photonics (NASDAQ: IPGP) jumped 5.8%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free.
- Analog Semiconductors company MACOM (NASDAQ: MTSI) jumped 7.5%. Is now the time to buy MACOM? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Amkor (NASDAQ: AMKR) jumped 3.7%. Is now the time to buy Amkor? Access our full analysis report here, it’s free.
Zooming In On MACOM (MTSI)
MACOM’s shares are very volatile and have had 24 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 13 days ago when the stock gained 4% on the news that traders positioned ahead of Nvidia's fiscal Q1 earnings.
Nvidia accounted for a significant percentage of the S&P 500's gains heading into the announcement, making the print the binary catalyst for the entire AI-infrastructure complex — networking ASICs, connectivity silicon, memory, and packaging all move together on the read-through.
Falling oil prices also supported the bullish sentiment. Semis carry arguably the longest-dated cash flows in the equity market because most of their value sits in 2027–2030 AI capex, not in the current quarter. When Brent crude drops 5.21% (like it did during the session), expected inflation falls, the Fed gets more room to cut, and the discount rate applied to those distant cash flows compresses. A small rate move produces an outsized stock move, which is why a 5% oil decline can power 8%+ chip rallies on the same day.
MACOM is up 117% since the beginning of the year, and at $379.49 per share, it is trading close to its 52-week high of $409.68 from May 2026. Investors who bought $1,000 worth of MACOM’s shares 5 years ago would now be looking at an investment worth $6,524.
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