Broadcom Q2 AI Forecast Miss Sparks 6% Slip in Micron Shares
MU•Broadcom reported Q2 revenue of $22.19B, up 48% year-over-year, and AI chip sales of $10.8B, up 143%, but its Q3 AI revenue forecast of $16B missed the $17.2B consensus, sending shares down 13% premarket. Micron Technology shares slid about 6% before market open as peers also tumbled.
1. Broadcom Q2 Results and Guidance Miss
Broadcom posted Q2 revenue of $22.19 billion, a 48% increase year-over-year, with AI chip sales totaling $10.8 billion, up 143%. The company’s forecast for AI semiconductor revenue in the current quarter was set at $16 billion versus a $17.2 billion consensus, triggering a 13% premarket decline in its shares.
2. Sector Spillover to Micron and Peers
The guidance shortfall sparked a broader pullback in semiconductor stocks, driving the VanEck Semiconductor ETF down over 3%. Micron Technology shares fell roughly 6% before the open, mirroring similar declines at Arm Holdings and Marvell Technology.
3. Market Sentiment and Futures
Nasdaq 100 futures slid 1.31% and S&P 500 futures fell 0.47% ahead of the open, as geopolitical tensions in the Middle East and escalating U.S.-Iran conflicts weighed on investor sentiment.
