Semiconductor stocks that benefited from the AI sector started to show weakness. Micron Technology (MU) traded from a $471.34 high to close at $395.53. Microsoft (MSFT) closed at a 52-week low. Investors are looking downstream for high-flying stocks.
Two stocks in that category are Lumentum (LITE) and Corning (GLW). LITE stock added another 10% to close at a new high. Its peer, Applied Optoelectronics (AAOI), said that it won a major hyperscaler customer order. AAOI stock added 18.9$ on Tuesday. Corning gained 8.43%.
Hewlett Packard Enterprise (HPE) might break out of its downtrend that began last fall. The stock added 7.77% to close near $24.00. In the last quarter, the business reported higher margins and stronger free cash flow. AI orders will rise from here, thanks to the $5.3 billion from the AI backlog.
Among the stocks with strong selling pressure, watch out for Axon Enterprise (AXON). The downtrend started last summer. Despite posting a 38.6% Y/Y revenue growth to $796.72 million in Q4, shares are performing poorly.
In the cryptocurrency platform, Coinbase (COIN) dropped by nearly 10%. Reports that it would let AI agents make payments on its infrastructure did not change the negative sentiment.
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