Monday’s Top 5 Chip Stock Movers: Nvidia Slumps, Intel Rallies, Allegro Spikes

Semiconductor stocks are in focus today, with headlines driving big moves for some of the industry’s top names. Here’s a look at the top five largest percentage moves among major semiconductor stocks this morning.

Chip Stock #1: Allegro Microsystems (ALGM), up +19.87%

ALGM stock is sharply higher today due to unconfirmed takeover speculation, with ON Semiconductor (ON) emerging as the potential acquirer. Allegro’s strong position in magnetic sensing technology - particularly in the automotive sector, where it commands up to $120+ content per vehicle in 800V vehicles - makes it an attractive acquisition target. Industry analysts note that semiconductor acquisitions typically command premiums of 30-40% over 52-week trading prices, suggesting substantial potential upside for ALGM shareholders. 

The recent leadership transition to Mike Doogue as president and CEO adds an interesting dynamic to the potential deal, which could attract competitive bidders, given Allegro's strategic value in the automotive niche. The company's diverse product portfolio, which extends beyond autos and into the industrial and data center markets, could make ALGM particularly appealing for potential acquirers looking to strengthen their market position in these growing sectors.

Chip Stock #2: NVIDIA (NVDA), down -4.04%

NVDA stock is trading down significantly today, and the decline appears to be primarily driven by concerns about Chinese buyers circumventing U.S. export restrictions to obtain Nvidia's advanced artificial intelligence (AI) chips through third-party channels in nearby regions, which has triggered investigations in Singapore and raised questions about the effectiveness of current controls. 

Adding to the pressure, investors are concerned about Nvidia's declining gross margins, which dropped to 73% in Q4 and are expected to further decrease to 71% in Q1 2026, suggesting increasing competitive pressures in the market. While the company continues to dominate the AI chip market with 98% share of data center GPU shipments, the potential for new U.S. tariffs on Chinese imports and possible retaliatory measures is creating uncertainty around Nvidia's future business prospects. 

Despite its strong growth prospects and the potential to benefit from massive AI infrastructure investments, including the $500 billion "Stargate" project, today's drop in NVDA reflects growing investor caution around regulatory challenges and margin pressures facing the company.

Chip Stock #3: Marvell Technology (MRVL), down -3.11%

MRVL stock is trading down despite a bullish nod from Bank of America analyst Vivek Arya today. In a note to clients, Arya said that Marvell, Nvidia, Broadcom (AVGO), Lam Research (LRCX), and Analog Devices (ADI) are the brokerage firm’s top five semiconductor picks for 2025.

“We expect beat/raise results from AVGO, MRVL and CRDO [this week] to re-energize interest in AI semis, since capex by US cloud customers and sovereign AI investments remains the only dependable bright demand spot in the global economy,” wrote Arya.

Marvell is slated to report its quarterly earnings after the close this Wednesday, March 5.

Chip Stock #4: Broadcom (AVGO), down -2.98%

Similarly, Broadcom has a quarterly report coming up on Thursday night. Ahead of that event, BofA’s Arya says that he expects management to reiterate its forecast for a long-term addressable market of $60-90 billion in custom AI chips.

Chip Stock #5: Intel (INTC), up +3.67%

On a brighter note, Intel stock is trading higher after Reuters reported that Nvidia and Broadcom are conducting manufacturing tests with the company, although a representative for Intel declined to comment to the outlet.

INTC is now up more than 20% on a year-to-date basis, and is testing its 200-day moving average. However, the beaten-down stock is still off by 48% from its 52-week high, set last March.