New York, June 7, 2026, 14:03 (EDT)
- Broadcom traded at $385.73 after falling sharply over Thursday and Friday.
- Nasdaq isn’t open for regular trading on Sunday. The next standard session is set for Monday.
- Investors are looking at an AI trade on individual stocks and a bigger test with the U.S. CPI coming up Wednesday.
Broadcom Inc. stock faced more selling pressure going into the week, after tumbling nearly 20% over the last two sessions. The drop fueled a wider retreat that extended the chip slump to the rest of the market.
Broadcom’s Nasdaq shares finished Friday at $385.73, dropping from $479.23 Wednesday and $459.97 at Monday’s close, LSEG data from Broadcom show. U.S. stock exchanges are open Monday through Friday, so Friday marks the final regular session before markets reopen Monday.
It’s straightforward: Broadcom went into last week priced as a top AI winner. Even solid results couldn’t move the stock.
Broadcom posted second-quarter revenue of $22.2 billion, a 48% jump from a year ago and another record for the company. CEO Hock Tan said sales of AI semiconductors came in at $10.8 billion, up 143%. Demand for custom AI accelerators and networking products helped lift results. “The momentum continues,” Tan said. He expects AI chip sales to reach $16.0 billion in the fiscal third quarter. Broadcom Inc.
Broadcom’s earnings missed the bar investors were watching. Reuters said second-quarter revenue came in below Wall Street’s $22.27 billion target. Its $16 billion AI-chip forecast also fell short of the $16.36 billion analysts in the Visible Alpha poll wanted. Ben Bajarin at Creative Strategies said Broadcom “just didn’t raise it.” Ryan Lee from Direxion called the drop a sign the market “demands perfection” for the chip trade to keep moving. Reuters
This is the core issue for the trade. Broadcom is posting strong growth, but its stock had priced in expectations for a boost with each new AI data-center headline.
Chip stocks took a hit. The PHLX Semiconductor Index dropped 10.3% on Friday for its steepest one-day slide since March 2020, wiping out around $1.3 trillion in market value for U.S.-traded chipmakers. Nvidia lost about 6%, AMD slid almost 11%, Marvell Technology tumbled 17%, and Broadcom sank 7.9% for the session.
Ohsung Kwon, chief equity strategist at Wells Fargo, told Reuters the sector looked “way overbought” but he doesn’t think it’s “the end of the semi bull market.” Dennis Dick, proprietary trader at Triple D Trading, put it this way: “Blindly buying the dip had been winning you money, but that ended today.” Reuters
Jobs data pushed stocks lower. The major indexes sold off Friday after the U.S. economy gained 172,000 jobs in May, which beat forecasts by a wide margin. The strong report fueled talk the Federal Reserve could stick to tight policy or raise rates again this year. Higher rates tend to pressure growth stocks by cutting what investors are willing to pay for future profit.
Stocks tumbled Friday, ending a run that lasted nine weeks for equities led by tech and chips, said Ryan Detrick, chief market strategist at Carson Group. “The dam just broke,” Detrick said. The Nasdaq dropped 4.18%, with the S&P 500 off 2.64%. The Dow finished down 1.35%. Reuters
Traders head into a busy week with few chances to pause. The U.S. Consumer Price Index comes out June 10 at 8:30 a.m. ET. If inflation is higher than expected, yields could stay in focus and chip stocks with high multiples could stay under pressure.
Broadcom faces a test after the move: will investors see the pullback as a new entry point in an AI leader, or is this the start of doubt about custom-chip demand keeping up with the hype. Nvidia is still the main name in graphics processors for AI, and Marvell is working to land more custom-chip contracts from big cloud operators.
The danger is that inflation sends yields up just as investors call Broadcom’s AI outlook too soft. In that case, shares could keep losing ground even if revenue stays strong. If rates settle and demand sticks, though, the drop last week might have just been traders getting caught the wrong way, not a sign something’s wrong with the company’s story.
