Broadcom’s revenue miss and unchanged sales forecast trigger tech sell-off, while ceasefire hopes weigh on oil prices.
Global equities extended losses on Thursday after Broadcom’s second-quarter revenue fell short of expectations and its long-range sales forecast remained unchanged. The AI chipmaker’s 13% after-hours plunge dragged tech-heavy indexes lower, with Asia’s Nikkei 225 and South Korea’s market dropping over 1.4% and 2.6%, respectively.
Investors had anticipated stronger growth from Broadcom, a key player in the AI chip sector, but the results raised concerns about demand sustainability. Europe’s bourses traded sideways, while U.S. futures pointed to further declines amid broader risk-off sentiment.
Brent crude prices dropped 3.5% to below $95 a barrel after Israel and Lebanon agreed to a ceasefire, contingent on Hezbollah halting attacks. The deal eased supply disruption fears, contributing to the commodity’s retreat from recent highs.