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
| Ticker | Close | Day | 1mo | YTD |
|---|---|---|---|---|
| $GOOGL | $372.19 | +3.68% | -6.49% | +18.10% |
| $MDB | $380.18 | +3.22% | +43.32% | -4.87% |
| $ORCL | $236.34 | +2.61% | +21.81% | +20.76% |
| $TSM | $444.92 | +1.88% | +6.06% | +39.21% |
| $NVDA | $218.66 | +1.82% | +5.21% | +15.79% |
| $AVGO | $418.91 | -12.59% | -1.53% | +20.51% |
| $ARM | $393.44 | -4.47% | +65.80% | +242.93% |
| $CRWD | $719.09 | -3.81% | +53.63% | +58.54% |
| $AMD | $523.20 | -3.56% | +24.16% | +134.13% |
| $DDOG | $243.60 | -2.69% | +69.51% | +82.10% |
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.