ARM and Intel lead AI chip rout as Broadcom guidance miss and jobs beat deepen two-day selloff, SOXX -10.4%

Arm Holdings plc led a sweeping AI semiconductor selloff Friday, falling 12.8% as a Computex-driven surge unwound; Broadcom Inc.'s muted third-quarter AI chip guidance and a stronger-than-expected May jobs report combined to send the SOXX semiconductor ETF to its worst single-session loss since early 2025. The Nasdaq Composite fell 4.18% to 25,709, its steepest daily decline since April 2025, while the S&P 500 shed 2.64% to 7,383 and SOXX closed down 10.44% at $539.77, erasing roughly $1 trillion in combined market capitalization from AI-related equities. Every ticker in the 25-stock universe tracked below closed lower on the day.

Today's biggest movers

ARM Holdings falls 12.8% as Computex rally unwinds on valuation concerns

Arm Holdings plc (NASDAQ: ARM) closed at $342.93, handing back a significant portion of the surge that followed NVIDIA Corp.'s (NASDAQ: NVDA) Computex announcement last week. NVDA unveiled a new AI chip for Windows PCs built around ARM architecture, sending ARM's shares up more than 15% in Thursday's session. Mizuho analyst Vijay Rakesh raised his price target to $500 from $420 on June 4, citing Oracle and ByteDance joining ARM's AGI CPU platform. Yet the same valuation that made Thursday's move so dramatic made Friday's reversal equally sharp. ARM trades at approximately 337 times this year's earnings and 74 times sales, a multiple that offers limited cushion when macro conditions shift. Friday's May payrolls print, which showed 172,000 new jobs against a subdued consensus, revived expectations for Federal Reserve rate hikes and triggered a broad rotation out of long-duration growth names. ARM's consensus analyst price target sits around $241, roughly 30% below Friday's close, a divergence that underscores how much of the stock's current pricing is momentum-based. The 1-month gain of 60.8% reflects the Computex-week surge that the June 1 recap documented in detail; ARM remains up 199% year-to-date despite Friday's reversal.

Broadcom's guidance miss set off two days of losses across semiconductors

Broadcom Inc. (NASDAQ: AVGO) fell another 7.9% Friday to $385.73, extending a two-session decline that now totals more than 20%. Wednesday's Q2 fiscal 2026 earnings report beat on adjusted earnings per share ($2.44 against the $2.40 consensus) and came close to revenue estimates ($22.19 billion versus $22.27 billion expected), but CEO Hock Tan declined to raise the company's full-year AI semiconductor revenue target of $100 billion. Third-quarter AI chip revenue guidance of roughly $16 billion landed below the street consensus of approximately $17.2 billion, triggering Thursday's 13% selloff and an extension into Friday as macro headwinds compounded the sector's reassessment. Jefferies maintained a Buy-equivalent rating and raised its price target to $550; Mizuho's Rakesh lifted his target to $530 from $480 with an Outperform rating, noting continued momentum into fiscal 2027 and describing $100 billion as the floor on AI chip revenue, not the ceiling. Those upgrades were insufficient to offset the broader sentiment shift. Broadcom's earnings set the tone for the sector's two-day decline, as covered in the June 4 recap on the initial guidance-miss reaction.

AMD and Intel tumble as rate fears compound sector contagion

Advanced Micro Devices Inc. (NASDAQ: AMD) fell 10.86% to $466.38, reversing part of the post-earnings gains accumulated after a strong Q1 report. AMD posted revenues of $10.25 billion and earnings per share of $1.37, both ahead of consensus, and guided Q2 to $11.2 billion in revenue. Barclays raised its price target to $665 with an Overweight rating; a Cowen analyst also expressed confidence in the bull case after a meeting with CEO Lisa Su. Yet AMD's forward valuation of approximately 72 times earnings left it squarely in the de-risking zone when the jobs report hit. AMD remains up 109% year-to-date, and the fundamental AI infrastructure demand story has not changed; Friday was a multiple-compression event rather than a thesis break.

Intel Corp. (NASDAQ: INTC) dropped 11.28% to $99.17, surrendering a portion of the week's gains that followed its strategic partnership announcement with Foxconn to co-develop rackscale AI infrastructure. Wells Fargo, Barclays, and Mizuho all raised INTC price targets on that partnership, anchoring the bull case to agentic CPU demand. The problem on Friday: the average analyst price target sits around $87, materially below the stock's close, and the consensus rating is Hold, with 10 buy ratings against 31 holds and 4 underperform or sell ratings. Intel remains up 152% year-to-date; the stock's recovery from 2024 lows has been remarkable, but at current levels it is priced well above what most sell-side models support in a higher-rate environment. See the June 3 recap for Intel's Computex-week momentum context.

Oracle falls 9.6% ahead of earnings as AI cloud scrutiny mounts

Oracle Corp. (NYSE: ORCL) slid 9.59% to $213.68 despite having no specific news catalyst, a signal that investors are de-risking ahead of its Q4 fiscal year 2026 earnings, scheduled for June 10 after market close. The options market has priced in a reaction of plus or minus 11.75%, reflecting high uncertainty about whether Oracle's AI cloud infrastructure buildout is converting to revenue quickly enough to support the stock's current valuation. ORCL has gained 54% since its last earnings report. The broader sentiment backdrop on Friday, with rate fears sharpening and the market reassessing AI capital expenditure durability, made a pre-earnings position trim a rational trade for institutional holders sitting on substantial gains. Oracle's 52-week range spans $134.57 to $345.72; at $213, the stock sits comfortably in the middle of that range, suggesting the market is pricing in continued execution uncertainty rather than a decisive rerating in either direction.

Notable but quieter

$SMCI Super Micro Computer Inc. (NASDAQ: SMCI) fell 11.22% to $41.64. The company carries the additional weight of an ongoing legal investigation that depresses sentiment independent of sector moves; Friday's broad selloff amplified that overhang considerably. SMCI is up 34.5% year-to-date after a difficult rerating period earlier in 2025, as covered in the June 2 recap on SMCI's Computex-week surge.

$NVDA NVIDIA Corp. declined 6.2% to $205.10. The move was orderly relative to peers, with volume of 215.6 million shares suggesting institutional distribution rather than panic. NVIDIA remains the clearest long-term beneficiary of AI infrastructure spending, and its YTD gain of 8.6% understates a recovery from April lows; the stock's relative resilience on a -10.4% SOXX day is notable.

$LRCX and $AMAT Lam Research Corp. (NASDAQ: LRCX) fell 9.85% to $303.28 and Applied Materials Inc. (NASDAQ: AMAT) dropped 9.71% to $453.01. Both are chip equipment names that benefited from AI infrastructure buildout demand; their declines tracked closely with front-end semiconductor peers as the Broadcom guidance miss raised questions about near-term capital equipment spending by foundries.

$BIDU Baidu Inc. (NASDAQ: BIDU) dropped 9.75% to $121.66. China-AI names face a dual headwind: global semiconductor sector contagion and persistent U.S.-China trade and technology uncertainty. BIDU is down 19.1% year-to-date, diverging sharply from domestic AI stock performance.

What to watch next week

Oracle Q4 fiscal year 2026 earnings on Tuesday, June 10 after market close is the most consequential near-term catalyst for AI cloud sentiment. Any commentary from CEO Safra Catz on AI infrastructure demand, cloud bookings, or data center contract wins will directly reset expectations for Amazon Web Services, Microsoft Azure, and Google Cloud comps. The options-implied move of plus or minus 11.75% makes ORCL the swing trade of next week. Beyond Oracle, Federal Reserve communications will be parsed closely following Friday's 172,000-job May payroll print; any hawkish signal on the rate path could extend the selloff in high-multiple AI names. On the chip side, Lam Research and Applied Materials report in late July, but any early commentary from distributors or foundry partners on tools orders will update the AI supply chain demand picture. Expect a cluster of revised analyst price targets on NVDA, ARM, and AMD in the coming days as the street digests Computex-week announcements against Friday's macro reset.

Not investment advice.