What Happened?
Shares of semiconductor manufacturer Vishay Intertechnology (NYSE: VSH) jumped 3.1% in the morning session after the stock's positive momentum continued as the company launched what it claimed was the industry's first series of automotive-grade ceramic capacitors with a Y1 safety rating designed for electric vehicles (EVs).
These new components, called the SMDY1 Automotive Series, are designed for the demanding environment of EVs. Their main job is to suppress and filter out electromagnetic interference, which is unwanted electronic noise, in critical systems like on-board chargers, traction inverters, and battery management systems. The capacitors are notable for being the first of their kind in a surface-mount casing, a key feature for modern electronics manufacturing. This innovation helps ensure the reliability and safety of EV electronics, particularly in high-humidity conditions, positioning Vishay to capitalize on the expanding electric vehicle market.
After the initial pop the shares cooled down to $15.67, up 3.2% from previous close.
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What Is The Market Telling Us
Vishay Intertechnology’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock dropped 4.4% as the major indices continued to retreat amid profit-taking and renewed concerns about tariffs.
Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
Vishay Intertechnology is down 6.1% since the beginning of the year, and at $15.67 per share, it is trading 19.3% below its 52-week high of $19.41 from December 2024. Investors who bought $1,000 worth of Vishay Intertechnology’s shares 5 years ago would now be looking at an investment worth $995.69.
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