Stocks making the biggest moves midday: Apple, Micron Technology, Coherent, DraftKings, J.M. Smucker & more

Semiconductor and AI infrastructure stocks sold off sharply, with SMH down 5%, AMD down 8%, Qualcomm nearly 9%, and Coherent off 13% as the tech downturn resumed. Apple fell more than 3% despite unveiling new AI software, while DraftKings rose 9% on strong preliminary Predictions volume growth to $1.3B in May and GSK agreed to acquire Nuvalent for $10.6B, sending Nuvalent up 39%. Positive homebuilder reactions followed 3.2% May existing home sales growth, while J.M. Smucker beat quarterly estimates and SailPoint and Vail Resorts fell on weak guidance and an earnings miss, respectively.

Analysis

The tape is signaling a classic de-grossing in the crowded AI/semis complex: when high-beta growth gets hit broadly, the first derivative is valuation compression, but the second derivative is procurement caution. That matters because hyperscaler capex is still concentrated in a narrow set of semiconductor and optical names; if equity markets keep punishing the suppliers, customers get more leverage on pricing and delivery terms into the next ordering cycle, which is a headwind for margins even if unit demand holds.

The more interesting setup is that the market is starting to discriminate between “AI story” and “cash-flow proof.” Names with visible, near-term monetization or idiosyncratic growth can decouple from the tape, while infrastructure beneficiaries with long lead-time payoffs remain vulnerable to multiple compression. If risk appetite stays weak for another 2-6 weeks, expect the weakest balance-sheet and highest-duration beneficiaries to underperform first, especially where expectations already embed a perfect second-half rebound.

On the positive side, housing-related strength is less about a straight read-through on fundamentals and more about a rate-sensitive rotation that can persist if bond yields continue to ease; that creates a tactical tailwind for builders and suppliers even before transaction volumes fully recover. In healthcare/biotech, acquisition premium is becoming the cleanest source of alpha: once a platform gets taken out, it reinforces a premium for other niche assets with differentiated pipelines, especially where larger peers are under pipeline pressure and willing to pay up for de-risked growth.

Key Decisions for Investors

• Short SMH or QQQ call spreads over the next 2-4 weeks to express continued de-grossing in AI/semis; use tight risk controls because a 1-day rebound can be sharp if rates stabilize.
• Pair long TOL/BLDR vs short SAIL or a basket of high-duration software over 1-3 months; housing can keep working on rate support while weak guidance names remain vulnerable to multiple compression.
• Buy GSK and/or NUVL on pullbacks as an event-driven basket; the acquisition premium should support follow-on M&A in small/mid-cap biotech over the next 3-6 months.
• Fade COHR/LITE strength on any intraday bounce for a 1-2 week trade; the risk/reward still skews negative if capex scrutiny broadens beyond semis into the optical supply chain.
• If you want a contrarian long, consider a small tactical long in AMD or NVDA only after a stabilization day and breadth improvement; downside is still open, but the setup is better for a short-covering rally than for new longs at current sentiment.