Shares of Broadcom (AVGO) plunged about 15% in premarket trading Thursday after its earnings and AI outlook failed to meet investors’ lofty expectations, triggering a broader selloff in semiconductor stocks.
Advanced Micro Devices (AMD) fell about 4%, Micron Technology (MU) fell about 5%, while Nvidia (NVDA), Marvell Technology (MRVL), and Intel (INTC) also traded lower.
The weakness comes after semiconductor stocks have had a strong run in recent weeks, boosted by optimism around capital spending on AI infrastructure and strong earnings from several chipmakers.
Broadcom’s results show that investors are demanding not only strong growth, but also increasing guidance.
Weakness is spreading to former bitcoin miners that have moved into AI infrastructure, with Hut 8 (HUT), IREN (IREN), and Cipher Mining (CIFR) falling about 5% in pre-market trading.
The Nasdaq was down about 1%, while the S&P 500 was little changed.
There will be more on this, but interestingly bitcoin has risen as AI trading stumbles, rising back to $63,600, or nearly 4% above its overnight low.
