By Grace Sharp
Publication Date: 2026-06-05 15:02:00
Broadcom (AVGO) shares fell roughly 15% intraday on Thursday, June 4, before closing down 12.59% at $418.91. This marked the company’s steepest one-day fall in more than a year. The stock had closed the previous session at $479.23, and the drop more than erased its May rally.
The selloff came not because Broadcom’s results were weak. It happened because its AI chip outlook failed to clear the elevated expectations built up during a multi-week pre-earnings rally. Custom-silicon and memory peers fell in sympathy. Names including AMD, Micron and Marvell traded lower. Notably, Nvidia rose modestly. This underscored that the move was a repricing of a narrow, richly valued trade rather than a wholesale loss of faith in AI demand.
The episode revives the question of whether the AI stock bubble could trigger a wider market crash.
The Numbers Behind the Miss
Broadcom posted record total revenue of $22.19 billion. AI semiconductor revenue surged 143% year over year to $10.8 billion….
