AI chip stocks shed $1.3 trillion as Broadcom earnings miss triggers expectations reset
Broadcom's AI networking revenue of $4.1bn missed the $4.8bn consensus by 14%, triggering a two-day selloff: Intel fell 11%, AMD 11%, Broadcom 14%; South Korea's Kospi briefly hit a circuit breaker; the Nasdaq dropped 2.2% and the S&P 500 1.4%
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Summary
On June 23-24, 2026, global AI and semiconductor stocks shed over $1.3 trillion in market cap after Broadcom's fiscal Q2 earnings showed AI networking revenue of $4.1 billion, missing the $4.8 billion analyst consensus by 14%, and CEO Hock Tan declined to raise 2027 guidance. Intel fell 11.28%, AMD 10.86%, Broadcom over 14%, Nvidia roughly 6%. South Korea's Kospi dropped 10% and briefly triggered a circuit breaker. The Nasdaq fell 2.21% and the S&P 500 1.44%. A partial recovery followed by June 26, though Nvidia and Alphabet remained under pressure.
Why it matters
The selloff is the sharpest test yet of AI valuations: investors had priced in accelerating AI revenue across the semiconductor stack, and Broadcom's miss revealed that hyperscaler capex is not translating into proportionate supplier revenue at the pace the market assumed. The debate over whether the AI build-out is generating monetisable returns has moved from analyst notes to market price.