Broadcom ( AVGO ) shares fell about 15% in premarket trading Thursday after its earnings and AI outlook missed investors’ lofty expectations, sparking a broader selloff across 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 been on a strong run in recent weeks, fueled by optimism around AI infrastructure investment and robust earnings from several chipmakers.
Broadcom’s results show that investors demand not just strong growth, but consistently increasing guidance.
The weakness is spilling over to former bitcoin miners who have moved into AI infrastructure, with Hut 8 (HUT), IREN (IREN), and Cipher Mining (CIFR) all down around 5% in premarket trade.
The Nasdaq fell about 1%, while the S&P 500 was little changed.
More to come on this, but interestingly bitcoin has edged higher as the AI trade stumbles and climbs back to $63,600, or nearly 4% above its overnight low.
