Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of chip designer Standard Microsystems (Nasdaq: SMSC) plunged as much as 10.6% today on triple the average trading volume.

So what: The company reported earnings this morning, which beat expectations senseless. A highly dilutive buyout of smaller chip wrangler Conexant Systems (Nasdaq: CNXT) explains the negative action.

Now what: Conexant seems stuck in the 1990s with fax modem chips and low-cost audio solutions. Why Standard Microsystems wants to buy this increasingly obsolete mess is beyond me. If the high-quality earnings report hadn't saved the day, today's drop could have -- should have -- been a lot steeper.

Interested in more info on Standard Microsystems? Add it to your watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.