Midday trading saw a mix of sharp single-stock moves and broader pullbacks in parts of the chip sector, as investors weighed company-specific catalysts alongside shifting momentum in artificial intelligence-related stocks. Rackspace surged after announcing an AMD-based computing capacity deployment, while several semiconductor names retreated as traders trimmed exposure after recent strength. Airline and consumer stocks also led pockets of upside on analyst and product news.
Key takeaways
- Rackspace shares jumped 9% after the company said it will deploy 30 megawatts of AMD-based computing capacity across its data centers.
- Semiconductor stocks fell as the VanEck Semiconductor ETF was down nearly 3% after three straight positive sessions, with moves extending across major chipmakers.
- Southwest Airlines gained nearly 4% following a Jefferies price-target increase tied to cabin segmentation and load-factor optimization efforts.
- Gildan Activewear dropped about 24% after a negative research note alleging weak organic growth, according to StreetAccount’s report.
- Dave & Buster’s fell about 5% after first-quarter results missed earnings and revenue expectations and showed weaker comparable store sales.
What drove the biggest stock moves
Rackspace and AMD: Rackspace shares jumped 9% after the company announced an agreement under which it will deploy 30 megawatts of AMD-based computing capacity across Rackspace data centers. AMD shares fell about 4%, reflecting that the market reacted more positively to the customer’s deployment plan than to AMD’s standalone outlook.
Southwest Airlines: Southwest stock rose almost 4% after Jefferies lifted its price target to $44 from $37. The firm cited continued optimization efforts involving cabin segmentation and load factors. While the revised target points to upside from where the stock sat earlier in the week, the updated level also implied downside relative to Monday’s close, according to the article.
Consumer and tech product catalysts: e.l.f. Beauty shares climbed more than 5% after the company launched its e.l.f. Hair line. The product rollout was described as beginning on TikTok Shop Tuesday and expanding to Target next week, while the stock was on track for a seventh consecutive winning day.
Mobileye expansion plans: Mobileye rose nearly 3% as it said it will establish an autonomous ride-hailing business, with an anticipated launch in a U.S. city in 2027.
Gilead Sciences’ FDA step: Gilead gained 2% after the FDA accepted a supplemental drug application for Yeztugo as a potential once-weekly tablet for HIV prevention.
Semiconductor pause after a run, AI-linked names soften
Chip-related trading cooled after a streak of gains. The VanEck Semiconductor ETF (SMH) was down nearly 3% on the day following three positive sessions, signaling investors were taking profits and rotating attention away from recent winners.
Several large semiconductor companies were reported lower, including Broadcom and Lam Research, each down roughly 3%, with Micron Technology also falling and Intel down nearly 6%. Nvidia declined about 1%.
The pullback extended to selected AI infrastructure and photonics exposures. Traders reportedly cashed out of some artificial intelligence infrastructure stocks after multiple positive days. Corning was down about 4% on the session and appeared set to end a three-day winning streak. In photonics, Lumentum and Coherent were down 7% and 5%, respectively, with Lumentum on track to snap a four-day gain streak and Coherent leaning toward a losing day after three sessions of gains.
Company-specific earnings, M&A and guidance signals
Gildan Activewear: Gildan plunged about 24% after StreetAccount reported that Jehoshaphat Research issued a negative note. The report said the firm is short the stock and argued that Gildan’s “true” organic growth is negative. The company was not immediately available for comment, according to the article.
Dave & Buster’s: Dave & Buster’s fell roughly 5% following weaker-than-expected first-quarter results. The company reported earnings of 16 cents per share, below a forecast of 60 cents per share cited by StreetAccount in the article. Revenue was $559.2 million versus a $580.6 million consensus figure, and comparable store sales dropped 5.4% year over year.
SpaceX and IPO aftermath: SpaceX shares jumped around 11%, extending an already large rise following its initial public offering. The IPO was priced at $135 per share and began trading Friday, with the stock reported around $213 at midday—about 58% above the IPO price, based on the article’s figures.
M&A momentum in chemicals: Huntsman dropped about 17% after agreeing to merge with rival Olin in an all-stock deal. The new combined company is expected to be named OlinHuntsman, with the deal expected to close in the first half of 2027. Olin shares were reported down about 6%.
Workforce changes and costs at Robinhood: Robinhood was down roughly 2% after announcing layoffs of about 10% of its workforce. The company expects to record about $20 million in charges related to severance and benefits costs, according to the article.
Yum’s divestiture: Yum Brands rose about 2% after saying it will sell its Pizza Hut business to private equity firm LongRange Capital and Yum China for $2.7 billion.
What to watch next
Investors will likely focus on whether semiconductor weakness extends or stabilizes after the profit-taking described in AI and chip-linked names. For individual movers, additional attention may turn to forward progress on regulatory filings at Gilead, execution of Mobileye’s 2027 autonomy timeline, and how the market digests recent company updates ranging from Dave & Buster’s results to Huntsman’s merger path into 2027.
