Overview
- Broadcom on Thursday reported record quarterly revenue of about $22.2 billion and said AI semiconductor sales rose roughly 143% year over year with about $30 billion in new bookings, but management reiterated rather than raised full‑year AI guidance.
- The unchanged guidance sent Broadcom shares down double digits and prompted a concentrated sell‑off across AI and semiconductor stocks that dragged the iShares Semiconductor ETF to its weakest one‑day drop since March 2020.
- Marvell showed extreme intraday volatility after Nvidia CEO Jensen Huang publicly praised the company, with the stock swinging from record highs to a drop of more than 16% as the broader chip rout accelerated.
- Stronger U.S. labor data that showed May payrolls rose by 172,000 pushed Treasury yields higher and reduced near‑term odds of Federal Reserve rate cuts, making long‑duration, high‑growth AI names more vulnerable to repricing.
- Analysts and commentators are split between calling the move a valuation‑driven profit taking and viewing it as a buying opportunity, while investors will watch peer guidance, upcoming corporate earnings, and bond yields for signs the repricing has stabilized.