By Yuvraj Malik
Publication Date: 2026-06-05 02:42:00
-
Broadcom projected $16 billion in AI chip revenue in the third quarter, much below estimates of $17.2 billion, and kept its fiscal year 2027 outlook unchanged at $100 billion.
-
The iShares Semiconductor ETF (SOXX) declined 2% on Thursday, while the Invesco QQQ Trust Series 1 (QQQ) declined 0.5%.
-
Investors viewed Broadcom’s forecasts as a bearish signal, and retail investors appeared to be using the dip in memory stock to increase their positions.
Micron Technology Inc. led declines in memory and chip stocks on Thursday as investors hit pause on the AI trade after many viewed Broadcom’s latest forecasts as a sign of lingering softness in parts of the chip market.
Micron shares fell 7.7% on Thursday, their worst fall in over a month, and declined nearly 5% in the overnight session. SanDisk shares dropped 4% and then 1.7% overnight. Western Digital shares dropped 3% and 1% in the regular and overnight sessions, respectively.
