Sandisk, Semtech, Penguin Solutions, Astera Labs, and Onto Innovation stocks trade down, what you need to know

• Chip stocks fell after October PPI rose 6.5% YoY, the fastest pace since Nov 2022, lifting 10-year yields to 5.14% • Sandisk fell 8.5% intraday; Semtech, Penguin Solutions, Astera Labs and Onto Innovation also declined • Sandisk is up 210% YTD but still trades 63.5% below its 52-week high of $2,335 Several chip stocks fell in Friday's morning session after hotter-than-expected wholesale inflation data pushed Treasury yields higher, compounding pressure from Nvidia's leadership turmoil. The Bureau of Labor Statistics said October's producer price index rose 0.3% month-over-month, slightly below the 0.4% economists expected, but the unadjusted annual rate climbed 6.5% — the fastest pace since November 2022. The 10-year Treasury yield rose nearly four basis points to 5.14%. Northlight Asset Management's Chris Zaccarelli said persistent price pressures keep the Fed on track to raise rates in December, and yields above 5% put immediate pressure on elevated equity valuations. Among chipmakers, Sandisk fell 8.5%, Semtech fell 5.8%, Penguin Solutions fell 6.8%, Astera Labs fell 6.9%, and Onto Innovation fell 6%. Sandisk shares are highly volatile, with 115 moves greater than 5% over the past year, suggesting the market views the news as meaningful but not a fundamental shift for the business. The stock is up 210% year-to-date at $852.31 per share, though still 63.5% below its 52-week high of $2,335 set in June 2026.