Key Highlights

● NVE traded at about $69.36 in the early afternoon on October 22.

● The stock had closed at $103.07 on Wednesday before dropping after hours.

● Fiscal second-quarter revenue of $5.83 million fell from $6.35 million.

● NVE kept its quarterly dividend at $1.00 a share.

NVE Corp (NASDAQ:NVEC) plunged on Thursday, October 22, 2026, ranking among the steepest decliners on the Russell 2000 after the company's fiscal second-quarter revenue fell.

The selling began after the bell on Wednesday, October 21, when the stock dropped to about $80.99 in after-hours trading from a regular-session close of $103.07. The slide deepened on Thursday, with the shares trading at about $69.36 in the early afternoon.

The quarterly numbers

NVE reported fiscal second-quarter revenue of $5.83 million, down from $6.35 million. Product sales fell, while revenue from contract research and development rose. Earnings came in at $0.65 a share, compared with $0.68.

The company kept its quarterly dividend at $1.00 a share. Chief executive Peter G. Eames pointed to revenue growth for the first six months of fiscal 2027 as a whole.

NVE makes spintronic products, including sensors and isolators, or couplers, that use nanotechnology to detect magnetic fields or transmit signals. It sells into markets such as industrial automation and medical devices. Product sales are the core of its business, so a decline in that line tends to weigh more heavily on sentiment than gains in contract research.

Why the reaction was so sharp

NVE is a small company with a thinly traded stock, and such stocks can swing sharply on quarterly results. A revenue decline, even a modest one in dollar terms, can prompt a large repricing when investors had been looking for steady growth.

The timing also worked against the stock. Thursday was a brutal day for technology shares, and investors were in no mood to give the benefit of the doubt to smaller technology companies that disappointed, however modest the shortfall.

A rough day for tech

AI and chip stocks led a sharp selloff after Meta Platforms (NASDAQ:META) outlined heavy capital spending and Lam Research (NASDAQ:LRCX) gave a December-quarter outlook that cited supply constraints. Lam's management warned that clean-room and component constraints will limit the industry's ability to fully meet demand into 2027. The Philadelphia Semiconductor Index had its biggest one-day drop since June 23.

The Nasdaq Composite fell 694 points to 26,008.86, its steepest drop since June 5, ending a seven-session winning streak, and the S&P 500 lost 93.74 points to 7,663.43, its worst day since July. Small-cap chip-related names were hit hard, with several semiconductor equipment and components companies sliding alongside larger peers.

Yet the broader market was split. The Russell 2000 edged up 3.01 points to 2,784.03, and about two of every three S&P 500 stocks rose, according to market reports, as money rotated into staples, health care, utilities and homebuilders. Treasuries rallied, pulling the 10-year yield back below a closely watched threshold for the first time since September 22.

NVE Looks to the Second Half of Fiscal 2027

Investors will look for any further commentary from NVE on demand for its products and on the outlook for the second half of fiscal 2027. The $1.00 quarterly dividend will remain a focus for income-oriented shareholders. More broadly, sentiment toward chip-related small caps will hinge on whether the AI selloff deepens or stabilizes, with Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) due to report on October 28 and Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) on October 29.