Qualcomm Stock Drops 6% in Broad Chip Selloff

Qualcomm (QCOM) shares fell 6% in morning trading after Broadcom's (AVGO) disappointing earnings and a stronger-than-expected US jobs report triggered one of the broadest chip selloffs of the year.

Potential Causes

• Broadcom (AVGO) Earnings: Broadcom reported quarterly results that missed analyst expectations, raising concerns about slowing demand for chips.
• Strong Jobs Report: The US jobs report showed stronger-than-expected growth, fueling expectations of interest rate hikes, which pressures tech stocks.
• Sector Contagion: The selloff spread across most chip stocks, with NVIDIA and AMD also declining.

Context

Prior to this decline, Qualcomm stock had risen about 15% over the past month, driven by optimism around smartphone chip demand. However, the combination of Broadcom's negative results and the strong jobs report prompted profit-taking.

Similar Moves in the Sector

Qualcomm was not alone; other chip stocks such as Broadcom (-4%), AMD (-3%), and Intel (-2%) also fell in the same session.