Arm Shares Drop 6% After Broadcom’s Q2 AI Guidance Miss
ARM•ARM•ARM•ARM•Arm Holdings shares fell about 6% premarket after Broadcom’s fiscal Q2 revenue of $22.19 billion, up 48% year-over-year, missed expectations and its AI semiconductor revenue guide of $16 billion trailed the $17.2 billion consensus. Broader chip stocks slid in Nasdaq futures, with Marvell and Micron also down roughly 6%.
Broadcom reported fiscal Q2 revenue of $22.19 billion, rising 48% year-over-year, but its forecast of $16 billion in AI semiconductor sales fell short of the $17.2 billion analysts expected. The shortfall rattled the AI trade and led to a 13% drop in Broadcom shares premarket, dragging Arm Holdings down roughly 6% alongside other semiconductor peers.
Nasdaq 100 futures declined 1.31% as investors digested the chip sector’s pullback, while S&P 500 contracts fell 0.47% and Dow futures added 0.61%. Rising U.S.–Iran tensions following missile and drone exchanges contributed to risk aversion, compounding pressure on AI-driven semiconductor stocks including Arm.
