By Sean Craig
Publication Date: 2026-06-05 04:01:00
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 good may not always be good enough.
Playing Against Perfect
The past few weeks have seen investors pour into firms selling artificial intelligence infrastructure, creating one of the year’s most robust rallies. The Philadelphia Semiconductor index, which tracks 30 of the world’s top US-listed chip manufacturers, has gained nearly 29% in the past month and 90% in 2026, reflecting trillions in added market value.
What propelled the recent wave of excitement was ever-higher AI capital spending forecasts: Goldman Sachs now predicts…
