Paramount and Netflix Slide; Microchip technology is thriving thanks to strong guidance

A semiconductor maker raised its quarterly forecast, as strong bookings signaled a recovery in several key end markets, and its shares led the S&P 500 index higher. Meanwhile, two major media players came under pressure when a competitor evaluated their competing takeover bids.

Major US stock indexes rose in midweek trading, as weak private sector payrolls data heightened expectations for a Federal Reserve interest rate cut this month. The Dow Jones jumped XX%, the S&P 500 jumped XX%, and the Nasdaq jumped XX%. For more coverage from Investopedia About today’s market movements, see here.

Shares of Microchip Technology ( MCHP ) rose 12.2%, marking the strongest daily performance for the S&P 500. The maker of microcontrollers and other semiconductors raised its quarterly forecast for net sales and adjusted earnings per share, highlighting strong booking activity and improving backlog. Shares of chipmakers ON Semiconductor (ON) and NXP Semiconductors (NXPI) rose 11% and 5.7%, respectively.

Vertex Pharmaceuticals (VRTX) shares rose 6.9% after Morgan Stanley upgraded the stock to “overweight” from “equal weight” and raised its price target. Analysts noted growing optimism about Vertex’s pipeline of kidney therapies, with data from phase 3 clinical trials of two experimental drugs, Pove and Inaxaplin, expected next year.

Shares of Delta Air Lines (DAL) rose 3.6% after it warned that the government shutdown, which has disrupted air traffic across the country, will likely cost the company about $200 million in pre-tax profits in the current quarter. However, the company also said that demand in the current quarter is strong and is expected to remain so next year. Shares of rival United Airlines (UAL) rose 3.9% on Wednesday.

Shares of Alexandria Real Estate Equities (ARE), a real estate investment trust focused on life sciences properties, fell 10.1% to suffer the largest loss among S&P 500 stocks on Wednesday. The downward move came after the company’s 2026 guidance for funds from operations, a key profitability measure for REITs, fell short of consensus expectations. The real estate investment trust also announced a 45% cut in its quarterly dividend.

SanDisk (SNDK) shares fell 5.3%. Following the stock’s massive year-to-date gains, fueled by optimism about the memory card and data storage provider’s AI opportunity, Sandisk joined the S&P 500 on November 28. However, the stock has been trending lower since its debut.

Shares of Paramount Skydance (PSKY) and Netflix (NFLX) fell 7.3% and 4.9%, respectively, as investors weighed their competing bids for Warner Bros. Television. Discovery (WBD). Netflix has reportedly made a mostly cash offer for the company’s film and streaming assets. Paramount is reportedly exploring a contingency plan to bypass the board and make a direct offer to WBD shareholders. WBD shares rose 0.2%.