Stocks and ETFs moved sharply in midday trading as investors rotated between memory chips, artificial intelligence infrastructure and select earnings and deal headlines. Seagate Technology and Western Digital slid amid renewed scrutiny of data-center demand, while AI-related names gained as sentiment perked up around the buildout.
Key takeaways
- Memory chip pressure: Seagate Technology fell 9.1% and Western Digital dropped 6.9%, alongside declines in memory-exposed funds, reflecting a softer tone on near-term demand.
- AI trades rebounded: Ciena surged 11.3% and Astera Labs rose 7.5%, tracking renewed investor interest in firms linked to AI infrastructure.
- Nuclear investment lifted utilities: Vistra jumped 12% after the U.S. Energy Department announced a $4.2 billion nuclear investment spanning Pennsylvania and Ohio.
- Company-specific catalysts drove winners: Marvell rallied on a brighter long-term revenue outlook, while Lamb Weston gained after topping quarterly earnings and raising its full-year range.
- Deals and upgrades added fuel: Option Care Health surged on a reported potential acquisition interest, and multiple analysts upgrades supported gains in select tech and consumer stocks.
Memory chips slide as investors reassess data-center outlook
Shares of Seagate Technology and Western Digital weakened materially during the session as investors reassessed demand and profitability expectations tied to the data-center buildout. Seagate fell 9.1%, Western Digital dropped 6.9%, and SanDisk declined nearly 2%. Memory ETFs also slid: the Roundhill Memory ETF (DRAM) was down 2.2%.
Investors appeared to shift from the broader data-center growth narrative toward more cautious assumptions about how quickly memory demand and pricing translate into earnings. The moves suggested near-term sensitivity to expectations even as the longer-term AI capex cycle remains in focus.
AI-linked names gain momentum
In contrast, stocks tied to the AI buildout climbed. Ciena jumped 11.3%, Nebius Group rose 9.5%, Astera Labs advanced 7.5%, and CoreWeave gained 4%. The breadth of gains across network and infrastructure-linked equities pointed to improving risk appetite for the AI supply chain.
Some of that enthusiasm was offset by pullbacks in selected biotech momentum plays. Moderna traded 6% lower and Novavax declined 10%, reversing part of recent sharp gains. Even after the selloff, Moderna remained up more than 130% over the past three months, while Novavax was still up nearly 20% in the same period, underscoring how much of the recent performance was already baked into recent positioning.
Energy and utilities react to federal nuclear investment
Vistra was among the biggest midday winners after the U.S. Energy Department unveiled a $4.2 billion nuclear investment across Pennsylvania and Ohio. The department said the initiative is intended to deliver more reliable American energy, strengthen the grid, lower costs and help meet growing power demand.
The market reaction highlighted how government energy policy can quickly translate into optimism for companies positioned for grid and generation needs. With AI and data centers increasing electricity demand expectations, investors have been attentive to developments that could affect reliability and future capacity planning.
Individual earnings, analyst upgrades and deals drive stock-specific moves
Marvell turns investor focus to long-term revenue. Marvell Technology shares jumped after the company issued a more optimistic outlook during its Investor Day. The firm projected fiscal 2028 revenue at $20 billion, while analysts polled by FactSet were looking for $18.17 billion. Marvell also guided fiscal 2031 revenue to a $70 billion to $90 billion range, compared with a consensus estimate of $47.04 billion.
Lamb Weston beats on earnings and raises its outlook. Lamb Weston climbed more than 11% after reporting adjusted earnings of 75 cents per share on $1.67 billion in revenue for the first quarter. The results topped FactSet consensus of 59 cents per share and $1.65 billion. The company also lifted its fiscal year adjusted earnings per share range to $3.05 to $3.35, up from an earlier call of $2.95 to $3.25.
Cybersecurity stays bid. The Global X Cybersecurity ETF (BUG) headed toward a seventh consecutive winning day and hit another all-time high. Zscaler and Palo Alto Networks rose around 3%, while CrowdStrike gained close to 2%, indicating sustained investor appetite for the cybersecurity theme.
Google deal supports Constellation Energy. Constellation Energy surged 14%, following Google’s announcement of major long-term power agreements tied to new nuclear capacity. According to the announcement, Google will buy power associated with 890 megawatts of new nuclear capacity, alongside a separate 2,700-megawatt supply agreement, supporting more than $4.3 billion in new Constellation investment. Alphabet shares were slightly higher on the day.
Option Care Health soars on acquisition chatter. Option Care Health jumped more than 30% after a report by the Financial Times said McKesson and private equity firm Clayton Dubilier & Rice are in advanced talks to acquire the infusion services provider in a transaction valued at more than $5 billion. McKesson stock traded marginally higher.
Berkshire disclosure lifts Lennar. In a regulatory filing, Berkshire Hathaway disclosed it purchased about 2.4 million shares of Lennar. Lennar rose nearly 4%, while Berkshire was fractionally higher.
Analyst upgrades underpin tech and consumer gains. Advanced Micro Devices rose almost 4% after Citi raised its price target to $800, pointing to more than 26% upside from Monday’s close. Citi cited greater CPU demand, tied to Meta’s Muse AI agent, and said AMD would be the primary beneficiary of a CPU renaissance.
Procter & Gamble added 2.5% after Evercore ISI upgraded the stock to outperform from in line and raised its price target to $166 from $161, implying about 14% upside from Monday’s close. Corteva surged 12% after JPMorgan upgraded the stock to overweight from neutral, setting a $19 price target that implies 53% upside from Monday’s close. JPMorgan said Corteva’s increased focus on crop chemicals and improving agricultural commodity prices should support the shares.
What to watch next
Investors will be watching how memory and data-center supply-chain expectations evolve, particularly whether weakness in storage and memory translates into broader semiconductor sentiment. More near-term catalysts include company earnings follow-through, additional guidance updates from AI infrastructure names, and upcoming macro data and central bank signals that could influence rate expectations and risk appetite.
