VanEck Semiconductor ETF Falls 3% on Broadcom's AI Forecast Cut
SMH•VanEck Semiconductor ETF slid roughly 3% after Broadcom plunged over 15% on failure to raise AI revenue forecasts for fiscal 2026 and 2027, with NVIDIA, AMD and others down 1-7%. Sector rotation into healthcare drove UnitedHealth up nearly 6% as the Dow Jones climbed 800 points to a 52-week high.
1. Market Reaction and ETF Performance
VanEck Semiconductor ETF fell about 3% in Thursday morning trade as investors reduced exposure to semiconductor assets, marking a sharp reversal from recent gains.
2. Broadcom Guidance and Chip Stock Declines
Broadcom plunged over 15% after opting not to raise AI revenue expectations for fiscal 2026 and 2027, triggering sector-wide declines of 1-7% in Nvidia, AMD, Marvell, Micron and Qualcomm.
3. Sector Rotation into Healthcare
Investors shifted into healthcare names, lifting UnitedHealth nearly 6%, Johnson & Johnson over 2% and Merck around 5%, while the Dow Jones Industrial Average surged more than 800 points to a new 52-week high.
