about 14% after the company’s results missed high investor expectations. The chipmaker also kept its long-term forecast of $100 billion in AI chip sales, which failed to satisfy some traders after the stock’s strong rally this quarter.
“Broadcom earnings (were) good news other than the fact that their guidance wasn’t what the market may have been expecting,” said Dustin Thackeray, Chief Investment Officer at Crewe Advisors.
Thackeray also said, “The chips are due for a bit of a breather. Obviously, they’ve had a tremendous run-up from the end of March lows.”
The S&P 500 technology index dropped 1.8%, while the Philadelphia SE Semiconductor index lost 2.8%. Arm Holdings, , and Marvell Technology also declined as investors cut positions in AI-linked stocks.