By Kaustubh Bagalkote
Publication Date: 2026-06-04 14:21:00
AI sector retreat adds pressure
Broadcom kept its AI in the long run income prospects instead of increasing it, disappointing investors who were hoping for a stronger forecast after the company’s recent rally.
The update sparked profit-taking in AI-linked technology stocks and hurt sentiment toward companies tied to spending on data centers, networks and enterprise infrastructure.
With valuations across the AI sector already reflecting aggressive growth expectations, investors used Broadcom’s prospects as an opportunity to lock in profits.
The resulting pullback rippled across the technology sector and added pressure to HPE, which has been one of the market’s best-performing infrastructure names over the past year. The stock has gained almost 197% in the last 12 months.
The broader technology sector was also under pressure: the Nasdaq fell 1.29% on Thursday, while the S&P 500 fell 0.18%. Despite the healthy breadth of the market, investors turned away from the fastest growing economies…
