Broadcom’s $16 billion AI chip revenue forecast falls short of $17 billion estimates, triggering a sector-wide decline.
Semiconductor stocks extended losses ahead of the Wall Street open, led by Broadcom’s disappointing AI revenue guidance. The company projected $16 billion in AI chip revenue for the next quarter, missing estimates of at least $17 billion and failing to raise full-year targets.
Yesterday’s session saw steep declines for Broadcom (-12.6%) and Micron (-7.7%), with dip buyers limiting further damage. Today, pre-market trading showed Broadcom down 1.2%, Micron 2.4%, AMD 2.3%, and Nvidia over 1% lower, despite its strong recovery the prior day.
Investors, accustomed to exponential growth, reacted sharply to the guidance miss, signaling a potential reset in lofty valuations. Nasdaq futures fell 0.9%, while Dow futures rose 0.2% as rotation into value sectors continued.