AI hardware stocks rise on SpaceX earnings and Tesla merger talks

Shares of MACOM, Semtech, FormFactor, Penguin Solutions, and Seagate advanced in the afternoon session as investor optimism returned to the artificial intelligence hardware sector. The gains followed strong corporate results and reports of a potential merger between two major technology firms.

According to CNBC, the rally was triggered by SpaceX's report of a 161% increase in third-quarter revenue. The company's AI business segment expanded ninefold during the period, generating $7.56 billion. Investors interpreted these figures as evidence that spending on artificial intelligence infrastructure remains resilient. Major semiconductor and cloud computing companies, including AMD, Nvidia, Micron, and Marvell, also saw their shares lift in response to the news.

A secondary catalyst for the tech-heavy Nasdaq was Elon Musk's announcement that SpaceX and Tesla have established special committees to discuss a merger. CNBC noted that market sentiment shifted rapidly toward suppliers within the computing ecosystem, aided by anticipation for Tesla's earnings report scheduled for release later in the day.

The specific price movements for the affected stocks were as follows:

• MACOM (NASDAQ: MTSI) rose 2.8%.
• Semtech (NASDAQ: SMTC) increased 3.3%.
• FormFactor (NASDAQ: FORM) climbed 3.8%.
• Penguin Solutions (NASDAQ: PENG) gained 3.1%.
• Seagate (NASDAQ: STX) jumped 3.3%.

FormFactor's shares are characterized by high volatility, with 80 moves greater than 5% recorded over the last year. In this context, the current move suggests the market views the news as meaningful but not as a fundamental shift in the company's business perception. This follows a 6.4% gain two days earlier, which occurred as investors returned to beaten-down stocks after a previous week's technology retreat. That earlier recovery was supported by an analyst upgrade for Intel, following a 4.5% tumble in the Nasdaq that had snapped a four-week winning streak.

The prior decline had stemmed from doubts over the durability of the AI build-out after Anthropic reported third-quarter revenue of $16.8 billion. At the same time, borrowing costs for firms financing data centers with debt rose, increasing financial pressure on the sector. Market mood improved once JPMorgan moved its rating on Intel from underweight to neutral and yields on ten-year Treasury bonds fell. Hardware suppliers remain directly exposed to hyperscaler infrastructure budgets, and semiconductor multiples can compress rapidly if borrowing costs climb or debt-financed data center expansions face scrutiny.

FormFactor is up 89.4% since the beginning of the year but trades at $112.08 per share, which is 29.9% below its 52-week high of $159.93 set in June 2026. An investment of $1,000 in FormFactor shares five years ago would now be worth $3,100.