Chip Selloff Erases over $1 Trillion in Stock Market Value
Broadcom’s $16 billion AI revenue outlook missed estimates, sparking a semiconductor selloff that pushed Micron down about 7%, analysts said.
- On Thursday, June 4, chipmaker Broadcom saw shares drop 14% after providing Q3 AI chip guidance of $16 billion, missing the $17.2 billion estimate and triggering a broader semiconductor retreat.
- Broadcom CEO Hock Tan reported fiscal Q2 2026 results beating expectations with non-GAAP EPS of $2.44 on $22.2 billion in revenue, yet the AI guidance miss overshadowed the strong quarterly performance.
- Investors fled the semiconductor space as Micron Technology and Marvell Technology fell 7% and 6.9% respectively in premarket trading, while Qualcomm and Intel also saw declines of 4% and 3.9%.
- Contagion spread across the memory chip complex, dragging SanDisk down 3% and Western Digital 2%, while prediction markets priced a 98% probability that Micron closes lower today.
- Despite market volatility, Micron Technology CEO Sanjay Mehrotra noted HBM order books stretch into 2027, and Morgan Stanley analysts stated "there's no quick fix to the memory shortage," suggesting robust long-term demand.
23 Articles
23 Articles
Chip selloff erases over $1 trillion in stock market value
June 5 : U.S.-traded chipmakers plunged on Friday, losing over $1 trillion in market value, with deep losses in AI heavy hitters including Nvidia, Micron Technology and Advanced Micro Devices, as Broadcom's weak report earlier this week reverberated across Wall Street.The PHLX chip index slumped almost 8.5 pe
Broadcom set to shed $300 billion in value as AI results fail to impress
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Broadcom Selloff Shows Breaking Records Doesn’t Satisfy ‘Perfection’-Seeking AI Investors
Broadcom, down 13% on Thursday, shed $280 billion in one of the biggest single-day drops in Wall Street history. What did the chipmaker do to earn this dubious distinction? It reported record quarterly revenue and operating profit, besting analyst expectations in the process, and projected better-than-expected revenue of $29.4 billion this quarter. The ensuing selloff highlighted the increasingly bullish expectations of AI investors, for whom go…
AI Rally Hits A Wall As Broadcom (NASDAQ: AVGO) Guidance Drags Tech Stocks Lower
The artificial intelligence rally that has powered technology stocks higher for months may be running out of steam, with major names across the sector falling sharply. Broadcom (NASDAQ: AVGO) delivered revenue guidance that fell short of investor expectations, triggering a broad selloff across AI-linked stocks on Thursday. Broadcom shares dropped 13.44% as markets digested the underwhelming outlook, raising questions about the pace at which AI i…
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