Micron Down 3.3%, Nvidia Falls 1.4% as Broadcom Cuts AI Revenue Outlook
NVDA•Micron shares dropped 3.3%, Intel and AMD stocks fell 2.8% and Nvidia lost 1.4% in premarket trading, marking the second consecutive day of declines in semiconductor equities. Broadcom’s third-quarter AI chip revenue forecast of $16 billion, below the $17.2 billion estimate, ignited a global chip selloff.
1. Sector Selloff Continues
Major semiconductor stocks suffered a second day of declines in premarket trading, with Micron sliding 3.3%, Intel and AMD each down 2.8%, and Nvidia off 1.4%. The iShares Semiconductor ETF, which has nearly doubled year to date, reflected widespread profit-taking after recent gains on AI accelerator demand.
2. Broadcom’s Soft AI Forecast
Broadcom projected $16 billion in third-quarter AI chip revenue, falling short of the $17.2 billion analysts expected, while its fiscal 2027 outlook remained unchanged at $100 billion. That guidance spurred a 12.6% one-day drop in its shares, the steepest since January 2025, and triggered the broader semiconductor selloff.
3. Retail Sentiment Turns Bearish
Retail investor sentiment on the sector ETF plunged to 8/100 in the ‘extremely bearish’ zone, signaling growing caution. Sentiment was neutral for Micron, bullish for Nvidia and AMD, and bearish for Intel, highlighting diverging confidence levels among traders.
