Micron’s shares lost a fifth of their value as chip stocks shed $1 trillion amid Broadcom’s disappointing AI revenue guidance.
Micron Technology (MU) saw its stock collapse 21% over two trading sessions, wiping out weeks of gains and erasing roughly $1 trillion in market value. The decline followed an 8% drop on June 4 and a 13% fall on June 5, marking its sharpest single-day decline in years.
The selloff was part of a broader chip sector downturn, with the iShares Semiconductor ETF (SOXX) dropping 10% on June 5, its worst day since March 2020. Marvell Technology fell over 16%, and the sector collectively lost $1 trillion in market cap. Micron, despite not being the trigger, suffered more than most peers.
The downturn was sparked by Broadcom (AVGO), whose AI revenue guidance fell short of expectations, leading to a 12% drop in its shares. The broader sentiment shift hit high-flying stocks like Micron hardest, as investors reassessed valuations in the sector.