The AI trade is having a terrible day

The blistering run-up in the market’s chipmakers sputtered on Thursday, with the gains derailed by a lackluster earnings report from AI darling Broadcom.

Companies supplying the hardware underpinning the AI trade took a beating on Thursday as earnings disappointment triggered a wave of selling in the sector.

The declines hit pause on the red-hot rally in chips and memory stocks in recent week, with the sector rising to new records on a string of earnings beats and unrelenting enthusiasm for AI.

“Chip stocks finally hit a speed bump early today, and much of Wall Street pressed the brakes on its extended rally,” Joe Mazzola, a head trading & derivatives strateigst at Charles Schwab, wrote of the sell-off on Thursday.

Broadcom led the losses in the sector. The Nvidia partner dropped as much as 16% after it missed on revenue for the second quarter.

Here were the most notable moves in the sector:

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