Were other chip companies affected besides Qualcomm and Micron?

Yes, the selloff also hit other chipmakers such as NVIDIA, AMD, and Broadcom itself.

How do bond yields affect tech stocks?

Higher bond yields increase borrowing costs and reduce the present value of future earnings, which hurts high-growth stocks like chip companies.

Qualcomm, Micron Lead Chip Stocks Lower After Broadcom Outlook

Shares of chip and hardware manufacturers are experiencing a sharp selloff today after Broadcom's disappointing forecast late Wednesday. Rising bond yields, which reduce the present value of future earnings, are adding to the pressure.

June 5, 2026

2 min read

Source: The Wall Street Journal

Shares of chip and hardware manufacturers are experiencing a sharp selloff this afternoon after Broadcom's (AVGO) forecast disappointed the market late Wednesday. Higher bond yields, which decrease the value Wall Street assigns to companies projecting high profits far into the future, are also weighing on the sector.

Potential Causes

Broadcom's Disappointing Forecast: Broadcom issued guidance for the next quarter that fell short of analyst estimates, raising concerns about slowing demand for semiconductors.
Rising Bond Yields: Higher yields reduce the attractiveness of high-growth stocks, particularly in the tech sector, where valuations are heavily dependent on distant future cash flows.

Context

Stock Performance: Qualcomm (QCOM) fell [X]% in the session, while Micron (MU) dropped [Y]%. (Exact figures not provided in the source.)
Sector Performance: The broader chip sector is under pressure, with the Philadelphia Semiconductor Index (SOX) declining more than [Z]%.

Similar Moves in the Sector

The selloff is not limited to Qualcomm and Micron; other chipmakers such as NVIDIA (NVDA), AMD (AMD), and Broadcom itself are also trading lower.

Frequently Asked Questions

The stocks fell due to Broadcom's disappointing quarterly forecast, which raised concerns about slowing chip demand, and rising bond yields that reduce the present value of future earnings.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.