Semiconductor shares drop up to 6% after Broadcom’s AI chip forecast disappoints investors, triggering a sector-wide pullback.
Shares of Intel, AMD, and Micron fell sharply in pre-market trading Thursday after Broadcom’s weaker-than-expected AI chip outlook spooked investors. The Palo Alto-based company’s decision to maintain rather than raise its 2026 guidance sent its stock down nearly 15%, dragging the broader semiconductor sector lower.
The sell-off follows a historic rally that pushed many chip stocks to record highs, with Micron surpassing a $1 trillion market capitalization last month. Earlier this week, Marvell Technology surged nearly 40% after Nvidia’s CEO called it the “next trillion-dollar company.”
Premarket declines ranged from 3% to 6%, with memory and storage names like Micron and SanDisk among the hardest hit. The pullback reflects investor caution after months of outsized gains in the sector.