NEW YORK, June 4, 2026, 09:06 (EDT)
Nvidia stock was down in U.S. premarket Thursday, as a chip selloff led by Broadcom weighed on one of the market’s biggest AI trades. The last quote for Nvidia was $214.75, putting its value near $5.24 trillion.
The timing is a factor. U.S. exchanges were set for a normal session, not an early close, and Nasdaq’s calendar for 2026 puts Juneteenth, June 19, as the next June market holiday.
Broadcom led the slide, down over 14% in premarket trade after its quarterly results missed high market hopes for custom AI chips—products built for individual clients instead of broader markets. Reuters said the plunge could wipe out more than $315 billion in Broadcom market cap if losses stick.
That hit Nvidia, since Broadcom designs custom chips for big tech clients like Alphabet and Meta. Investors watch Broadcom’s work as a cheaper way to get AI chips than Nvidia’s expensive GPUs—chips that run AI models and still lead the market. Broadcom left its $100 billion AI revenue goal for fiscal 2027 untouched, not raising it, which took some air out of the stock after its big jump.
S&P 500 and Nasdaq 100 futures slipped as traders reacted to Broadcom’s latest results. “Broadcom is finding that meeting and even slightly beating forecasts is not enough,” said Dan Coatsworth, head of markets at AJ Bell. Futures are contracts that suggest where indexes could open before regular trading. Reuters
Nvidia’s fundamentals are still holding up. For the fiscal first quarter, the company posted record revenue of $81.6 billion, an 85% jump from a year ago. Data center revenue hit $75.2 billion. Nvidia also approved another $80 billion for buybacks and raised its quarterly dividend to 25 cents from 1 cent.
Chief Executive Jensen Huang moved to ease supply worries this week, saying at Computex in Taipei, “We have supply for very, very robust growth, but we’re still supply constrained.” Supply constrained means demand is still ahead of what the company can deliver. Reuters
Nvidia is stepping up its push into personal computers. The company’s new RTX Spark chip, coming this fall in PCs from the big manufacturers, aims to put AI on desktops and laptops. That puts Nvidia in tougher competition with AMD and Intel for PC processors. CPUs, or central processing units, handle most tasks in computers and servers.
Huang’s visit to South Korea put supply chain control back in focus for the stocks. Samsung Electronics and SK Hynix account for about 70% of the memory in AI chips made by Nvidia, according to Reuters. “Nvidia’s dependence on South Korean suppliers is rising,” KB Securities analyst Jeff Kim said. Reuters
The bear case is clear enough. Broadcom’s drop signals that even solid AI chip makers can get hit if their guidance doesn’t clear the bar, and tighter U.S. export rules still hang over China-linked sales. The U.S. Commerce Department this week acted to shut a loophole for advanced AI chips shipped to Chinese companies outside China. A Nvidia spokesperson told Reuters this guidance did not affect Nvidia since earlier rules already covered it.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Broadcom’s drop is “a classic case of very high expectations meeting a market that wanted perfection.” That’s what’s at stake for Nvidia now—the stock still trades like it’s the heart of the AI rollout, but Thursday’s action shows investors are asking how much perfection is baked into chip names. Reuters
