What Happened?

A number of stocks fell in the afternoon session after tech stocks pulled back as reports surfaced that Chinese customs authorities blocked Nvidia's H200 AI chips, effectively halting their entry despite recent U.S. export approvals. 

This semiconductor sell-off, led by Broadcom and Micron, reflected deepening fears that the "AI trade" was colliding with a protectionist "new normal." Investors were concerned about the prospect of a fragmented global order where tech giants are caught between Washington's industrial strategy and Beijing's push for semiconductor sovereignty. Broadening the risk, markets were also agitated about the Justice Department's investigation into Fed Chair Jerome Powell, sparking concerns over central bank independence. This domestic political friction, paired with rising oil prices from Iranian civil unrest, likely forced a pivot from growth to defense.

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:

• Data Storage company MongoDB (NASDAQ: MDB) fell 3.9%. Is now the time to buy MongoDB? Access our full analysis report here, it’s free.
• Data Storage company DigitalOcean (NYSE: DOCN) fell 4.5%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free.
• Design Software company Cadence Design Systems (NASDAQ: CDNS) fell 3.6%. Is now the time to buy Cadence Design Systems? Access our full analysis report here, it’s free.
• Sales Software company HubSpot (NYSE: HUBS) fell 4.2%. Is now the time to buy HubSpot? Access our full analysis report here, it’s free.
• Finance and Accounting Software company Workday (NASDAQ: WDAY) fell 3.2%. Is now the time to buy Workday? Access our full analysis report here, it’s free.

Zooming In On DigitalOcean (DOCN)

DigitalOcean’s shares are extremely volatile and have had 41 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 4.4% on the news that Barclays analyst Raimo Lenschow maintained an "Overweight" rating on the stock but raised the price target to $63 from $49. The move signaled continued confidence in the company's market potential. Adding to the positive sentiment, Barclays also named DigitalOcean as one of its preferred stock picks for 2026. The investment bank noted that the software sector appeared poised for a rebound, helped by higher free cash flow and a more active environment for company acquisitions.

DigitalOcean is up 6.8% since the beginning of the year, and at $52.31 per share, it is trading close to its 52-week high of $55.33 from January 2026. Investors who bought $1,000 worth of DigitalOcean’s shares at the IPO in March 2021 would now be looking at an investment worth $1,231.

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, it’s free.