Invesco QQQ Trust Series 1 dropped 0.5% after Broadcom forecasted $16 billion in Q3 AI chip revenue versus $17.2 billion estimates, prompting weakness across memory stocks. The iShares Semiconductor ETF fell 2% as retail investors increased positions in Micron Technology, SanDisk and Western Digital on the pullback.
Broadcom projected Q3 AI chip revenue of $16 billion versus $17.2 billion consensus and maintained its fiscal 2027 revenue outlook at $100 billion, triggering a 12.6% drop in its share value—the steepest since January 2025.
The iShares Semiconductor ETF declined 2% and the Invesco QQQ Trust Series 1 fell 0.5% as investors reassessed AI chip demand; memory names Micron Technology, SanDisk and Western Digital led losses with intraday drops of 7.7%, 4% and 3%, followed by additional overnight declines.
Retail traders saw the memory stock pullback as a buying opportunity, with sentiment on Micron turning bullish and several investors expressing plans to increase positions during the downturn, citing expectations of a near-term rebound.
