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Qualcomm Rebounds After Index Removal, Chip Sector Reels From Selloff

Qualcomm (QCOM) bounced 2.44% in after-hours trading after a brutal chip selloff, as the Philadelphia Semiconductor Index plunged 4% in a single day and markets question the sustainability of the AI chip boom.

OurAlpha

10 Jul 2026 — 4 min read

Qualcomm stages a rebound after being removed from an index, as the chip sector selloff takes a breather.

Qualcomm (QCOM) bounced back after the close today, following a multi-day rout in chip stocks and news of its removal from an index. As of 23:30 ET on July 9, Qualcomm was trading at $191.11, up 2.44% from the prior close of $186.56.

As of 23:30 ET on July 9 (11:30 Beijing time on July 10), Qualcomm (QCOM) was trading after-hours at $191.11, up 2.44% from the prior close of $186.56. The stock hit an intraday high of $196.09.
The prior trading day (July 7), the chip sector suffered a broad selloff, dragging Qualcomm lower. The Philadelphia Semiconductor Index fell about 4% that day and is down 13% over the past month.^{[Yahoo Finance]}
On July 7, Samsung Electronics reported a record operating profit of 89.4 trillion won (about $58.4 billion) for the April-June period, a 19-fold YoY surge. Yet the stock fell 6.25% that day, as markets fretted that the AI chip sales boom may not be sustainable.^[Barron's]
On the same day, SpaceX was fast-tracked into the Nasdaq 100, but its stock fell on July 7. Barron's reported that technical factors drove the volatility.^[Barron's]
On July 7, AstraZeneca (AZN) fell 5.08% after a gene-silencing drug failed a late-stage trial. Analysts called the move an overreaction.^[Barron's]
On July 7, quantum computing play D-Wave Quantum (QBTS) fell 6.58%, despite winning a $1.5 million grant from the National Science Foundation.^[CNN]

As of 23:30 ET on July 9 (11:30 Beijing time on July 10), Qualcomm (QCOM) was trading after-hours at $191.11, up 2.44% from the prior close of $186.56. The stock hit an intraday high of $196.09. The bounce comes after a brutal selloff on July 7 that dragged Qualcomm lower, and follows news of its removal from an index. The rebound arrives as markets remain deeply divided on the chip sector's outlook.

Chip Sector Hit by Broad Selloff on July 7

On July 7, global chip stocks suffered a sharp selloff. According to Yahoo Finance, tech stocks led global markets lower that day, even as Samsung Electronics posted record results — operating profit for the April-June period surged 19-fold YoY to 89.4 trillion won (about $58.4 billion). Instead of reassuring investors, the numbers stoked fears that the AI chip sales boom may be unsustainable.^[^{Yahoo Finance}^]

Kathleen Brooks, research director at XTB, commented: "These are record results from Samsung, but rather than reassuring the market, these strong results have raised concerns that the AI chip sales boom is unsustainable."^[^{Yahoo Finance}^]

The Philadelphia Semiconductor Index fell about 4% on the day and is down 13% over the past month.^[^{Yahoo Finance}^] Samsung Electronics shares fell 6.25% in Korea, despite the massive earnings beat.^[^Barron's^]

Fears Grow That Memory Chip Cycle Has Peaked

According to investingLive, markets increasingly believe that computer chip pricing is near its peak and are repricing manufacturers' earnings prospects accordingly. Forward P/E ratios for memory chip stocks are already low — Micron Technology (MU) trades at roughly 7x earnings — but the market senses that peak pricing is coming and that memory prices will revert to low-margin averages.^[^{investingLive}^]

The report notes that Micron's stock has fallen 27% from its post-earnings peak a month ago. In that earnings report, the company guided for current-quarter EPS of $31, implying a P/E of just 7.3x. investingLive's analysis says that if you believe the company can sustain extreme margins for 2-3 years, that looks very cheap — but the market is questioning that assumption.^[^{investingLive}^]

Morgan Stanley, in a report on the memory industry, said: "Memory is still a cyclical industry — though this time is different — and is approaching peak rates of change in (1) YoY price changes, (2) inventories, and (3) breadth of earnings revisions." The firm believes this could lead to a sideways market and is why the memory sector may be taking a breather here.^[^{investingLive}^]

Market Divergence: AI Winners vs. Laggards

Despite the broad pressure on chips, investingLive notes that the market is filtering the AI noise in creative ways, distinguishing between the overall impact of the technology on the economy and on individual companies. Within the S&P 500, 151 stocks fell while 326 rose; in the Nasdaq 100, 30 fell and 49 rose.^[^{investingLive}^]

The report also notes that a team spun out from OpenAI reportedly made a major breakthrough in memory-efficient architecture, which may be one factor weighing on chip stocks. Separately, Reuters reported that Chinese startup DeepSeek is developing its own AI chips, potentially reducing its reliance on other major chipmakers.^[^{Yahoo Finance}^]

Other Market Moves: Geopolitics and Index Changes

Geopolitics also added to market volatility on July 7. According to Yahoo Finance, Qatar accused Iran of attacking two oil tankers in the Strait of Hormuz, with one tanker evacuated and at risk of exploding. The news pushed oil prices higher, with U.S. crude rising 2.83% to $70.49 a barrel and Brent crude up 3.03% to $74.17 a barrel.^[^{Yahoo Finance}^]

On the same day, SpaceX was fast-tracked into the Nasdaq 100, but Barron's reported that its stock fell on July 7, with technical factors driving the volatility.^[^Barron's^]

In biotech, AstraZeneca (AZN) fell 5.08% after its gene-silencing drug Wainua failed to show "statistically significant benefit" in a late-stage trial for transthyretin amyloid cardiomyopathy. Analysts called the move an overreaction.^[^Barron's^]

Quantum computing stock D-Wave Quantum (QBTS) fell 6.58% on July 7, despite having announced a $1.5 million grant from the National Science Foundation and being named a quantum computing leader by IDC.^[^CNN^]