According to data from MSX.COM, chip giant Broadcom dropped 14% in pre-market trading. While its overall revenue and earnings per share for the second fiscal quarter slightly exceeded expectations, its guidance for AI chip sales in the next quarter was $16 billion, below the analyst consensus estimate of $17.2 billion.
Broadcom's latest earnings guidance disappointed the market, triggering a sell-off in chip stocks among investors. Micron Technology and ARM fell over 6%, SanDisk dropped over 4%, while Western Digital, AMD, Intel, Seagate Technology, and Qualcomm each fell over 3%. ASML fell over 2%. U.S. stock index futures collectively declined, with the Dow Jones Industrial Average down 1.21%, the S&P 500 down 0.74%, and the Nasdaq Composite Index down 0.89%.