U.S. equities finished the week with a negative tilt as investors digested a hotter-than-anticipated May jobs report that pushed Treasury yields higher. The rise in yields pressured rate-sensitive sectors, most notably technology and semiconductor stocks, producing outsized moves in several individual names.
Broadcom
Shares of Broadcom slipped about 8.9% this week after the chipmaker's quarterly results, which were modestly ahead of expectations, did not satisfy investor hopes for a stronger near-term AI revenue trajectory. Management reiterated its fiscal 2027 AI revenue target of $100 billion or more, a projection that fell short of some buy-side expectations that had been set considerably higher.
Evercore ISI analyst Mark Lipacis maintained an Outperform rating and a $582 price target on the stock, describing the post-earnings sell-off as a buying opportunity. "We believe risk/reward is attractive at after-hours levels," Lipacis said, adding that the company's commentary aligned with channel checks suggesting pressure on premium ASIC margins and a shift of TPU production to other suppliers for lower-end variants.
Hewlett Packard Enterprise
Hewlett Packard Enterprise was among the week's top performers despite a pullback in the last sessions, rising 15.5% after reporting a robust fiscal second quarter. HPE posted earnings of $0.79 per share, comfortably beating the $0.53 consensus, on revenue of $10.7 billion versus an expected $9.76 billion. The company also increased its full-year earnings guidance to a range of $3.35 to $3.45 per share, compared with the prior consensus of $2.42.
Following the results, Bank of America Securities analyst Wamsi Mohan more than doubled his price target on HPE to $80 from $38 while maintaining a Buy rating. Mohan attributed the strong quarter to ISS performance tied to CPU-driven inferencing demand and suggested that HPE's initial fiscal 2027 guidance for revenue growth of 8%–12% and earnings growth of 12%–16% would "likely prove conservative."
MGM Resorts
MGM Resorts climbed 10.2% after confirming it had received a takeover proposal from Barry Diller's People Inc. The bid is for $48.30 per share in cash. MGM's board said it would review the proposal carefully but did not indicate whether it planned to accept, reject, or seek improved terms.
Stifel analyst Jeffrey Stantial reiterated a Buy rating and a $48 price target on the stock, arguing that the initial offer materially undervalues the company. "We think it is possible that MGM's Board rejects this initial offer and seeks a higher takeout premium," Stantial said, noting that the stock traded above the offer price during the session, which he views as a sign that investors expect a higher bid.
Coherent
Coherent gained about 3.8% over the week, although some of those gains were later trimmed. The optical components manufacturer surged mid-week after remarks by Nvidia's CEO praising rival Marvell's optical capabilities and suggesting Marvell could become a trillion-dollar company. That bullish comment lifted sentiment across the optical sector, benefiting Coherent and peers before momentum cooled.
Taylor Morrison Home
Taylor Morrison Home experienced a notable jump after Berkshire Hathaway announced a definitive agreement to acquire the homebuilder for $72.50 per share in cash, representing a 24% premium to its May 29 closing price. The transaction implies a total enterprise value of approximately $8.5 billion. Berkshire's CEO Greg Abel said the company intends to eventually combine its site-built homebuilding operations with Taylor Morrison into a unified platform.
Across these stories, the common thread is investors reacting to discrete corporate developments while broader market forces - particularly rising Treasury yields - exert pressure on rate-sensitive equities. The moves highlight how earnings color and strategic transactions can create sharp divergences within a generally weak market backdrop.