Key facts
- Broadcom's stock dropped 12.6%, erasing $280 billion in market value.
- Broadcom's Q3 AI semiconductor revenue guidance of $16 billion missed analyst expectations of $17.2 billion.
- The selloff impacted other chip stocks, including AMD, Nvidia, and Micron.
- The S&P 500's nine-week winning streak is at risk.
- Quantinuum's IPO closed up only 0.6% on its first day.
Broadcom's stock declined 12.6%, erasing approximately $280 billion in market value, after issuing third-quarter AI semiconductor revenue guidance of $16 billion, which fell short of the $17.2 billion anticipated by analysts. Despite reporting record second-quarter revenue of $22.19 billion, up 48% year-over-year, CEO Hock Tan's reiteration of the fiscal year 2027 AI revenue target at 'in excess of $100 billion' without an increase failed to satisfy investors. The broader semiconductor industry felt the impact, with AMD, Nvidia, and Micron experiencing declines in premarket trading. The S&P 500's nine-week winning streak is at risk due to this broad market pullback. Other AI-linked stocks like Lumentum and server makers Dell and Super Micro Computer also fell. Separately, quantum computing firm Quantinuum's Nasdaq debut was lackluster, closing up only 0.6% from its IPO price. Crypto-linked stocks such as Coinbase and Robinhood also saw declines as Bitcoin continued its selloff.