Broadcom Plunges 14% on Disappointing AI Chip Guidance; Semiconductor Stocks Tumble

According to Odaily citing MSX.COM, Broadcom plunged 14% in premarket trading today (June 4) after issuing third-quarter AI chip sales guidance of $16 billion, falling short of analyst consensus expectations of $17.2 billion. Despite the chipmaker posting Q2 revenue and earnings per share slightly above forecasts, the weaker forward guidance sparked broad semiconductor selloff.

Micron Technology and ARM Holdings dropped over 6%, while SanDisk fell over 4%. Western Digital, AMD, Intel, Seagate Technology, and Qualcomm each declined over 3%. U.S. stock index futures declined broadly, with the Dow Jones falling 1.21%, S&P 500 down 0.74%, and Nasdaq Composite down 0.89%.