Broadcom Stock Plunges 15% on Disappointing AI Chip Sales Forecast
On June 4, 2026, Broadcom shares fell 15% in premarket trading after its Q3 AI chip revenue forecast of $16 billion missed analyst expectations of $17.2 billion. Despite beating Q2 earnings estimates, the weak outlook triggered a potential $300 billion market cap wipeout and sparked a broader semiconductor sell-off affecting Intel, AMD, and Micron. CEO Hock Tan reiterated 2027 AI revenue guidance above $100 billion.
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Broadcom Stock Plunges Despite Strong Earnings and AI Sales Growth
Broadcom's stock experienced a sharp decline of nearly 15% following its earnings release, despite reporting objectively strong financial results. The company posted 48% revenue growth and a 140% surge in AI semiconductor sales, while also beating bottom-line estimates and issuing strong guidance. Analysts from Motley Fool attributed the sell-off to high market expectations, noting the stock had risen 15% ahead of the earnings announcement. The discussion also touched on other companies reporting earnings, including CrowdStrike, and broader market volatility. The article is based on a podcast episode of Motley Fool Hidden Gems Investing recorded on June 4, 2026.
Yahoo FinanceBroadcom's Selloff Shows the New Rule of AI Stocks: Great Isn't Good
Broadcom (AVGO) shares fell 13% despite reporting strong Q2 results, including 143% AI chip revenue growth and record free cash flow. The selloff was triggered by Q3 AI guidance of $16 billion, which, while implying over 200% growth, fell short of the sell-side's $17.2 billion 'whisper number.' This disappointment caused a broader $1.3 trillion chip sector selloff, illustrating that in the current AI stock cycle, in-line results can act as downgrades due to inflated multiples. The article notes Broadcom's business fundamentals remain strong, with over $30 billion in AI bookings and multi-gigawatt commitments from major tech firms, but recommends a 'Hold' at the current $383 price given the high expectations priced into the stock.
Yahoo FinanceBroadcom and AMD Sink 4%, NVIDIA Slides 3% as Chip Selloff Deepens
Semiconductor stocks experienced a significant selloff on June 10, 2026, with Broadcom and AMD each falling 4% and NVIDIA sliding 3%. The decline is attributed to three overlapping concerns: lingering disappointment from Broadcom's Q3 AI revenue guidance of $16 billion, which missed analyst expectations of $17.2 billion despite strong overall growth; fears of a hawkish Federal Reserve policy shift due to a hot labor market and sticky inflation; and potential capital rotation into upcoming mega AI IPOs from SpaceX, Anthropic, and OpenAI. BNP Paribas warned that investors might liquidate chip positions, particularly NVIDIA's $5 trillion market cap, to fund these IPOs. The article notes that Broadcom's Q2 revenue grew 48% year-over-year to $22.19 billion, with AI semiconductor revenue up 143%.
Yahoo FinanceBroadcom and AMD Sink 4%, NVIDIA Slides 3% as Chip Selloff Deepens
Semiconductor stocks experienced a significant selloff on June 10, 2026, with Broadcom and AMD each falling 4% and NVIDIA sliding 3%. The decline is attributed to three overlapping factors: lingering disappointment from Broadcom's Q3 AI revenue guidance of $16 billion, which missed analyst expectations of $17.2 billion despite strong overall growth; growing fears of Federal Reserve rate hikes due to a hot labor market and sticky inflation; and chatter about capital rotation into upcoming mega AI IPOs from SpaceX, Anthropic, and OpenAI. BNP Paribas warned that investors might liquidate chip positions, particularly NVIDIA's $5 trillion market cap, to fund these IPOs. The selloff extends a rough period for AI-hardware leaders, with Broadcom shares already down 14% following its earnings report last week.
Yahoo FinanceCiti Revisits Broadcom Stock Price Target After Post-Earnings Selloff
Broadcom shares dropped 12.6% on June 4, 2026, after the company reported fiscal Q2 earnings that met expectations but failed to boost its AI revenue forecast. The chipmaker posted adjusted earnings of $2.44 per share on revenue of $22.19 billion, slightly below analyst estimates. Revenue grew 48% year-over-year to $22.19 billion, and net income surged 88% to $9.31 billion. For the current quarter, Broadcom forecast revenue of $29.4 billion, above Wall Street estimates. Despite strong growth, investors were disappointed that Broadcom did not raise its forecast for over $100 billion in AI semiconductor revenue by fiscal 2027. CEO Hock Tan noted AI revenue more than doubled to $10.8 billion in the quarter, with expectations of $16 billion next quarter. Broadcom's six major AI customers include Anthropic, Alphabet, Meta, and OpenAI. The stock remains up 21% year-to-date, outperforming the Nasdaq Composite.
Yahoo FinanceBroadcom Leads Chip Stocks Lower After Mixed Earnings and AI Sales Forecast
Broadcom (AVGO) stock tumbled on June 4, 2026, despite reporting better-than-expected Q2 earnings, as investors focused on a slight revenue miss of $22.19 billion and the lack of a new AI catalyst or marquee customer announcement. The company's AI chip sales surged 143% year-over-year to $10.8 billion, but a shift toward custom ASICs over standard silicon pressured margins, raising concerns about the hyper-profitable phase of AI infrastructure buildout normalizing. This triggered a sector-wide selloff, dragging down Nvidia, AMD, Micron, Arm, and Marvell. However, Jefferies analyst Blayne Curtis raised his price target on AVGO to $550, citing potential margin expansion as custom chip programs for Meta and OpenAI ramp up next year. Broadcom remains up 40% from its year-to-date low, and the dip is viewed as a buying opportunity for long-term investors.
Yahoo FinanceBroadcom Sell-Off Signals Valuation Warning for AI Investors
Broadcom shares plunged up to 16% on June 4, 2026, after the company reported fiscal Q2 2026 earnings that slightly missed revenue expectations ($22.19B vs $22.27B) and failed to raise full-year guidance. Despite strong 48% year-over-year revenue growth driven by AI chip demand, the stock's high valuation (100x trailing earnings) made it vulnerable to disappointment. The article warns AI investors that lofty valuations carry significant risk, as even strong performers like Broadcom can suffer sharp declines when expectations are not exceeded. The sell-off also dragged down Nvidia shares by 6.2%, reflecting broader market sensitivity in the AI sector.
Yahoo FinanceWhy Sandisk Stock Dropped Today
Sandisk (NASDAQ: SNDK) shares fell 1.7% on June 4, 2026, reversing gains from the previous day when Morgan Stanley boosted the stock nearly 7% by raising its price target to $1,100 and citing a memory shortage. The decline was triggered by Broadcom's (NASDAQ: AVGO) fiscal Q2 2026 earnings report, which beat expectations on sales ($22.2 billion) and earnings ($2.44 per share), and provided Q3 guidance above consensus ($29.4 billion vs. $28.5 billion). However, Broadcom's AI chip sales guidance of $16 billion for Q3 fell short of Wall Street's $17.2 billion forecast, sparking a 15% sell-off in Broadcom stock. Despite this, Broadcom's AI chip revenue grew 143% in Q2, and the Q3 guidance implies over 200% growth. The article suggests the sell-off may be overblown and that Sandisk, which produces high-bandwidth flash memory for AI data centers, could still benefit from the memory shortage and rising DRAM prices.
Yahoo FinanceBroadcom's historic $320 billion sell-off ranks among largest megacap wipeouts
Broadcom (AVGO) experienced a historic sell-off, dropping nearly 15% and erasing approximately $320 billion in market value after its quarterly earnings report. While the company beat earnings expectations, its AI chip sales forecast disappointed investors, triggering one of the largest single-stock market-cap losses among megacap stocks since 2019. Only Nvidia and Microsoft have recorded larger one-day wipeouts in this group. The article notes that Broadcom's AI business is still growing fast, but investor expectations had outpaced the forecast. However, historical analysis since 2009 shows that Broadcom has recovered from similar 6%+ drops nearly 80% of the time within one month, and has been higher one year later in all but one instance. Median returns after such drops are 8% (1 month), 20% (3 months), 35% (6 months), and 61% (1 year), suggesting patience may be rewarded.
Yahoo FinanceBroadcom's record $280 billion sell-off ranks among largest megacap wipeouts
Broadcom (AVGO) shares plunged 12.6% on June 4, 2026, erasing $280 billion in market capitalization, marking one of the largest single-day stock losses in megacap history. The sell-off was triggered by disappointing AI chip sales forecasts, despite the company beating quarterly earnings expectations. According to Yahoo Finance analysis, only Nvidia, Microsoft, and Apple have posted larger one-day market-cap losses since 2019. The article notes that Broadcom has historically recovered from such drops, with the stock higher one year later in all but one case since 2009. Median returns after 6%-plus drops were 8% after one month, 20% after three months, 35% after six months, and 61% after one year. The analysis suggests investors should watch for buying opportunities but not rush in immediately.
Yahoo FinanceBroadcom's sell-off enters megacap history with $320 billion loss
Broadcom (AVGO) experienced a historic sell-off, dropping nearly 15% and erasing approximately $320 billion in market value after its AI chip sales forecast disappointed investors despite beating quarterly earnings expectations. This ranks as the third-largest single-stock wipeout among megacap US-listed stocks since 2019, trailing only Nvidia and Microsoft. The article notes that AI winners have become so large that one disappointing forecast can erase hundreds of billions in a single session. However, historical analysis shows that since 2009, Broadcom has recovered from 6%-plus one-day drops nearly 80% of the time within one month, 90% within three months, and in all but one case within one year. Median returns after such drops were 8% after one month, 20% after three months, 35% after six months, and 61% after one year, suggesting patience may be rewarded.
Yahoo FinanceWhy Micron Stock Crashed Today
Micron Technology (NASDAQ: MU) shares fell 7.3% on June 4, 2026, reversing four days of gains. The decline was triggered by Broadcom's (NASDAQ: AVGO) fiscal Q2 2026 earnings report, despite Broadcom beating expectations on sales ($22.2 billion) and earnings ($2.44 per share) and issuing strong Q3 guidance of $29.4 billion in sales versus the $28.5 billion consensus. Broadcom's AI semiconductor sales grew 143% year-over-year, and nearly half its revenue now comes from AI data centers. The article argues the sell-off is irrational, noting that Morgan Stanley had just doubled Micron's price target due to rising DRAM prices and a memory shortage. The author concludes Micron's fundamentals remain strong and the drop is a temporary market reaction.
Yahoo FinanceWhy Micron Stock Crashed Today
Micron Technology (NASDAQ: MU) shares fell 7.3% on June 4, 2026, despite strong industry tailwinds. The decline was triggered by a 15% sell-off in Broadcom (NASDAQ: AVGO) after its fiscal Q2 2026 earnings report, even though Broadcom beat expectations on both sales ($22.2 billion) and earnings ($2.44 per share), and guided Q3 revenue above consensus at $29.4 billion. Broadcom reported 85% profit growth and 60% free cash flow growth year-over-year, with AI semiconductor sales surging 143%. The article argues the sell-off is irrational, noting that Morgan Stanley had just doubled Micron's price target due to rising DRAM prices and memory shortages. The author concludes Micron's fundamentals remain strong and the drop is a temporary market overreaction.
Yahoo FinanceMicron Drops 7% as Broadcom's Disappointing AI Outlook Triggers Semiconductor Selloff
Shares of Micron Technology fell 7% to $1,004 on June 4, 2026, after Broadcom's AI chip guidance disappointed markets. Broadcom projected Q3 AI chip sales of $16 billion, below the $17.2 billion analyst estimate, despite beating Q2 earnings expectations. Broadcom shares dropped 14% to $411. The selloff spread across the memory chip sector, with SanDisk falling 3% and Western Digital dropping 2%. Micron, which has seen a 865% stock run, had no specific negative news but was dragged down by sympathy selling tied to AI capex sentiment repricing. Micron's revenue grew 57% last quarter and its HBM orders extend into 2027.
Yahoo FinanceBroadcom Stock Falls Despite Strong Earnings, Dragging Down Chip Sector
Broadcom shares dropped nearly 15% on Thursday despite reporting better-than-expected fiscal second-quarter earnings and revenue. The chipmaker posted adjusted EPS of $2.44 on revenue of $22.19 billion, a 49% year-over-year increase, both above consensus estimates. Analysts attributed the sell-off to investor disappointment that Broadcom did not raise its long-term AI chip sales forecast of at least $100 billion for 2027, despite strong results from other semiconductor firms. Concerns over margin compression as Broadcom shifts toward custom chips also weighed on sentiment. The decline dragged down other chip stocks including Marvell, AMD, Nvidia, Intel, and Arm, pressuring major indexes. Despite the slump, Broadcom shares remain up about 18% year-to-date.
Yahoo FinanceWhy Broadcom Stock Crashed Today
Broadcom (NASDAQ: AVGO) stock fell 15.2% on June 4, 2026, despite reporting better-than-expected Q2 2026 earnings. The company posted non-GAAP earnings of $2.44 per share on sales of $22.2 billion, beating analyst forecasts of $2.39 per share and $22 billion in sales. GAAP earnings were $1.91 per share, an 85% year-over-year surge. Free cash flow increased 60%, and sales grew 48% year-over-year, driven by strong demand for AI chips, particularly TPU data center chips developed for Alphabet. AI semiconductor revenue now makes up nearly 50% of total revenue, growing 143% year-over-year. Despite beating estimates and raising Q3 sales guidance to $29.4 billion (above the $28.5 billion consensus), investors sold off the stock, apparently expecting even faster growth. The article notes that Broadcom's profit margins are rising as earnings and free cash flow outpace sales growth.
Yahoo FinanceBroadcom's Bloodbath: What a Stock Priced for Perfection Looks Like
Broadcom (AVGO) reported strong fiscal Q2 2026 earnings, beating estimates with $22.19 billion in revenue and $2.44 adjusted EPS, while AI semiconductor revenue surged 143% year over year. However, the stock plunged roughly 14% in premarket trading after the company issued fiscal Q3 AI revenue guidance of $16 billion, falling $1.2 billion short of Wall Street's $17.2 billion expectation. The article highlights how the market's demand for accelerating AI growth punished Broadcom despite solid fundamentals, noting the stock had risen 63% in the prior two months. Analysts suggest the sell-off, potentially wiping out $317 billion in market cap, may create a more attractive long-term entry point. The piece also promotes a separate analyst list of top 10 AI stocks that excludes Broadcom.
Yahoo FinanceIntel, AMD, Micron Shares Sink as Broadcom Results Spark Semiconductor Sector Sell-Off
On June 4, 2026, semiconductor stocks including Intel, AMD, Arm Holdings, and Marvell Technology fell more than 3% in pre-market trading, triggered by a disappointing outlook from custom AI chip designer Broadcom. Broadcom's weaker-than-expected AI chip forecast and its decision to reiterate rather than raise 2026 guidance sent its shares plunging nearly 15%. The sell-off spread across the sector, with high-flying memory and storage names Micron and SanDisk tumbling 6% and 4% respectively. The decline came after a blistering rally that pushed many chip stocks to record highs, including Micron surpassing $1 trillion in market capitalization last month. Earlier in the week, Marvell shares surged nearly 40% after Nvidia CEO Jensen Huang called the company the 'next trillion-dollar company.'
Yahoo FinanceBroadcom faces historic $300 billion market cap wipeout after AI chip forecast disappoints
Broadcom (AVGO) shares plunged 15% in premarket trading on June 4, 2026, on track for one of the worst single-day shareholder value destructions in history, wiping out approximately $300 billion in market capitalization. The selloff followed a mixed fiscal Q2 2026 earnings report where revenue of $22.19 billion modestly beat consensus estimates of $22.13 billion, and EPS of $2.44 topped expectations of $2.39. However, the company's AI semiconductor revenue forecast for Q3 of $16 billion fell short of analyst estimates of $17.2 billion, disappointing investors who had driven the stock up nearly 40% year-to-date. CEO Hock Tan's awkward start to the earnings call, where he initially read last year's numbers, added to negative sentiment. Yahoo Finance AlphaSpace data showed Broadcom trading at a forward P/E of 43x, nearly double the S&P 500's multiple, leaving no room for error. HSBC analyst Frank Lee noted the thesis remains unchanged despite the disappointment.
Yahoo FinanceBroadcom faces historic $300 billion market cap wipeout after AI chip forecast disappoints
Broadcom (AVGO) shares plunged 15% in premarket trading on June 4, 2026, on track to erase approximately $300 billion in market capitalization after the company's fiscal Q2 2026 earnings report and AI chip guidance fell short of elevated Wall Street expectations. CEO Hock Tan's awkward start to the earnings call, where he initially read last year's numbers, set a negative tone. While Broadcom reported record revenue of $22.19 billion (up 48% YoY) and beat EPS estimates ($2.44 vs $2.39), its AI semiconductor revenue forecast for Q3 of $16 billion missed analyst estimates of $17.2 billion. The stock had rallied nearly 40% year-to-date ahead of the results, trading at a forward P/E of 43x. HSBC maintained a 'thesis unchanged' view, but the selloff represents one of the largest single-day market cap destructions in history.
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