Intel fell 2.8%, while Micron and AMD dropped 3.3% and 2.8% respectively after Broadcom forecast $16 billion in Q3 AI chip revenue versus $17.2 billion estimates. Retail sentiment for the SOXX ETF plunged into the 'extremely bearish' zone as semiconductor shares reset gains after nearly doubling year-to-date on AI accelerator demand.
Broadcom reported beat second-quarter revenue and profit but guided Q3 AI chip revenue to $16 billion versus $17.2 billion estimates, triggering a 12.6% decline in its stock and sparking a broader semiconductor selloff.
Micron shares fell 3.3% and Intel stock declined 2.8% in premarket trading, while AMD dropped 2.8% and Nvidia slid 1.4%, as investors took profits following heavy AI-driven gains.
Retail sentiment for the iShares Semiconductor ETF plunged into the ‘extremely bearish’ zone and sentiment shifted to bearish for Intel, reflecting heightened caution among individual investors.
The iShares Semiconductor ETF has nearly doubled year-to-date compared with an 11% gain for the S&P 500, prompting profit-taking after surging demand for AI accelerators fueled a rally in chip stocks.
