According to MSX.COM data, Broadcom fell 14% in pre-market trading after reporting slightly better-than-expected revenue and earnings per share for its second fiscal quarter, but issued AI chip sales guidance of $16 billion for the next quarter, below analysts’ expectations of $17.2 billion. As a result, Micron Technology and ARM dropped more than 6%, SanDisk fell over 4%, Western Digital, AMD, Intel, Seagate Technology, and Qualcomm all declined more than 3%, while ASML slid over 2%. U.S. stock index futures tumbled collectively, with the Dow Jones Industrial Average down 1.21%, the S&P 500 down 0.74%, and the Nasdaq Composite down 0.89%.
Broadcom's AI Chip Guidance Falls Short of Expectations, Semiconductor Stocks Decline
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Summary
Broadcom’s Q3 AI chip guidance of $16 billion fell short of the $17.2 billion forecast, sending shares down 14% in pre-market trading and pressuring futures markets. Despite stronger-than-expected Q2 revenue and EPS, the weak outlook triggered a broad sell-off in semiconductor stocks. Micron and ARM each dropped over 6%, while SanDisk fell more than 4%. The Fear & Greed Index shifted sharply toward fear, as Western Digital, AMD, Intel, Seagate, and Qualcomm all declined over 3%. ASML lost over 2%. U.S. stock futures followed lower, with the Dow down 1.21%, the S&P 500 at -0.74%, and the Nasdaq at -0.89%.
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