Broadcom Sinks 14% as AI Chip Outlook Hits Semiconductor Stocks
Updated
Updated · XTB · Jun 5
Broadcom Sinks 14% as AI Chip Outlook Hits Semiconductor Stocks
3 articles · Updated · XTB · Jun 5
Summary
Broadcom fell 14.37% at the open, leading a sharp retreat in AI and semiconductor names after investors judged its AI chip sales outlook too conservative despite record revenue.
Jobless claims rose 13,000 to 225,000, adding to caution on Wall Street by reinforcing signs of a cooling labor market while elevated oil prices kept inflation risks in view.
The selling spread across CrowdStrike, Micron, ARM, Marvell, AMD and Lam Research, while Nvidia, Apple, Microsoft, Alphabet and Meta stayed positive, signaling rotation rather than a broad tech washout.
Analysts framed the move as aggressive profit-taking in crowded AI trades after strong 12-month gains, with investors also watching Bitcoin-linked weakness and a potential SpaceX IPO priced at $135 a share.