Broadcom tumbles 13% as AI chip guidance stalls; Google rallies on $85B expansion bet, SOXX -2.1%

Broadcom Inc. shed 12.6% in heavy turnover Thursday after the chipmaker's fiscal second-quarter report missed on revenue and its chief executive declined to raise the company's 2026 AI semiconductor outlook, puncturing a rally that had lifted the stock more than 20% since January. The S&P 500 closed up 0.41% at 7,584, the Nasdaq ended fractionally lower at 26,830, and the PHLX Semiconductor ETF (SOXX) fell 2.1% as the Broadcom selloff spread across the chip complex.

Today's biggest movers

Broadcom slides on AI chip guidance caution

Broadcom Inc. (NASDAQ: AVGO) closed at $418.91, down 12.59%, its worst single-session performance in over a year and the biggest drag on the semiconductor sector Thursday. The company's fiscal second-quarter report, released late Wednesday, showed revenue of $22.19 billion, slightly below the $22.27 billion Wall Street consensus, though adjusted earnings per share of $2.44 beat estimates of $2.32 by a clear margin. AI-specific revenue more than doubled year-over-year to $10.8 billion, with CEO Hock Tan citing a custom-chip customer roster that includes Anthropic, Google, Meta and OpenAI. Third-quarter revenue guidance of approximately $29.4 billion came in ahead of the $28.53 billion analysts had modeled.

The selloff, however, was driven by what Tan did not say: the company held its 2026 AI semiconductor sales forecast unchanged, declining to raise the target that investors had expected to grow alongside rapid custom-chip adoption. With AVGO up more than 20% year-to-date entering the session and the stock pricing in continued acceleration, the guidance hold was treated as a ceiling signal. Volume of 80.6 million shares - roughly twice the 30-day average - underscored the conviction behind the exit. Forty-six analysts maintain a Strong Buy consensus with an average 12-month price target of $497.74, positioning the day's close at a substantial discount to the street's longer-run view.

CrowdStrike retreats despite strong quarterly beat

CrowdStrike Holdings, Inc. (NASDAQ: CRWD) fell 3.81% to $719.09 even as the cybersecurity company posted fiscal first-quarter FY2027 results that beat on both revenue and earnings. Sales grew 26% year-over-year to $1.39 billion and annual recurring revenue expanded 24% to $5.51 billion. Adjusted operating margin widened five percentage points to 23.5%. Jim Cramer, appearing on CNBC, defended the stock and described the net new ARR figure as "an extraordinary number." Soft second-quarter sales guidance, however, failed to satisfy the elevated growth bar embedded in CRWD's valuation after a 53% one-month surge heading into the print.

JP Morgan analyst Brian Essex raised his price target from $475 to $800, maintaining an Overweight rating, on June 2. Stifel lifted its target to $790 from $660. The consensus of 54 analysts carries a Buy rating with an average 12-month target of $663.84, roughly 8% below Thursday's close, suggesting limited upside support at current levels in the near term.

Google rallies on $85 billion AI infrastructure commitment

Alphabet Inc. (NASDAQ: GOOGL) rose 3.68% to $372.19, bucking the chip-sector weakness, after the company confirmed it has upsized its capital raise for AI infrastructure and compute to $84.75 billion - a figure that signals Alphabet is competing for data-center capacity at a scale few peers can match. Piper Sandler analyst Thomas Champion raised his 12-month price target to $445 from $425, maintaining an Overweight rating, citing the firm's initial analysis of citation data flowing through Google's AI Overview and AI Mode products as evidence that Alphabet's AI search transition is generating measurable engagement. Sixty-one analysts carry an average price target of $429.87, roughly 15% above Thursday's close.

MongoDB extends its post-earnings climb

MongoDB, Inc. (NASDAQ: MDB) added 3.22% to $380.18, continuing the momentum from its June 1 earnings release. Fiscal Q1 revenue of $688 million grew 25% year-over-year, ahead of the $663.8 million consensus, and the company raised its full-year FY2027 guidance. The Atlas cloud database platform posted its fourth consecutive quarter of roughly 29% revenue growth, with management pointing to accelerating adoption from AI-driven workloads as the primary demand driver. Barclays analyst Raimo Lenschow raised his target to $387, Oppenheimer to $410, Needham to $400 and Stifel to $435. As noted in Monday's recap, MongoDB has been one of the clearest beneficiaries of the enterprise AI spending cycle that accelerated following Computex.

Notable but quieter

ARM Holdings plc (NASDAQ: ARM) declined 4.47% to $393.44, pulled lower by the chip-sector rotation following Broadcom's guidance disappointment. Barclays set a 12-month target of $360, well below the current price, highlighting how ARM's 243% year-to-date advance has pushed the stock far ahead of consensus price targets. The spread between current price and analyst range is among the widest in the universe we track.

Advanced Micro Devices Inc. (NASDAQ: AMD) shed 3.56% to $523.20 in sympathy with the chip complex, despite robust underlying fundamentals: Q1 revenue of $10.25 billion grew 38% year-over-year and the company guided Q2 to approximately $11.2 billion, up 45% year-over-year at the midpoint. Barclays, Mizuho and TD Cowen have raised price targets to $665, $615 and $600, respectively. For context on AMD's recent momentum in the chip equipment cycle, see Wednesday's recap on the Intel and AMD Computex rally.

Oracle Corp. (NYSE: ORCL) gained 2.61% to $236.34 as investors positioned ahead of the company's fiscal fourth-quarter results, scheduled for June 10. Citi raised its target to $330, Scotiabank to $290 and UBS to $285, each citing expected strength in cloud and AI infrastructure bookings.

Datadog, Inc. (NASDAQ: DDOG) slipped 2.69% to $243.60 despite positive momentum from its own earnings cycle: Q1 revenue reached $1.006 billion for the first time in company history, up 32% year-over-year. JP Morgan raised its target to $320. Thursday's retreat reflects modest profit-taking after a 69% one-month gain.

What to watch tomorrow

Oracle reports fiscal Q4 results on June 10, with cloud revenue growth and AI infrastructure contract wins as the focal points after a run of analyst target hikes. Apple's Worldwide Developers Conference runs June 8-10 in Cupertino, where incoming CEO John Ternus is expected to outline on-device AI features that could accelerate the AI hardware refresh cycle. Geopolitical developments tied to the U.S.-Iran standoff and the Israel-Lebanon ceasefire will continue to influence oil prices, yields and sector rotations. Broadcom and CrowdStrike both saw selling deepen in Thursday's session; how they open Friday as after-hours overreactions are repriced will be a signal for the wider chip complex. For broader sector context, see Tuesday's SMCI and Applied Materials Computex recap.

Not investment advice.