Key Takeaways
- Semiconductor stocks faced a major downturn on June 6, 2026, with the iShares Semiconductor ETF (SOXX) dropping 10%.
- Broadcom’s disappointing Q2 guidance, despite record revenue of $22.2 billion, triggered the selloff.
- Chip stocks rebounded early the following week, with notable gains from Intel and Micron.
Market Reaction to Broadcom’s Guidance
The semiconductor industry experienced its most significant decline in years on June 6, 2026, as the iShares Semiconductor ETF (SOXX) plunged approximately 10% to $540. This was triggered by Broadcom’s lesser-than-expected guidance, which disappointed investors despite the company reporting record quarterly revenue of $22.2 billion. The Nasdaq composite index fell by 4%, marking its worst performance since April 2025.
Broadcom’s fiscal second-quarter results showcased impressive growth, with revenue up 48% year-over-year and AI chip revenue rocketing 143% to $10.8 billion. However, guidance for the upcoming quarter projected a significant drop to only $16 billion in AI chip revenue, leading to market disappointment. The company’s CEO, Hock Tan, indicated that AI bookings had exceeded $30 billion, insisting that demand for AI chips remains “simply insatiable.”
The decline was widespread across the semiconductor sector; Marvell saw a drop of 17%, while both Micron and Intel fell 13% and AMD 11%. Broadcom itself slid as much as 20% amid this pressure, demonstrating negative sentiment across the chip industry.
Contributing Macro Economic Factors
Additional macroeconomic pressures compounded the situation, following a strong jobs report that revealed 172,000 jobs were added in May—double the forecast. The unemployment rate stood at 4.3%, and the 10-year Treasury yield climbed to 4.54%, which negatively impacted growth stock valuations. Investors reduced their exposure to semiconductor stocks that had previously surged.
As the following week began, market sentiment showed signs of recovery, aided by easing tensions between Israel and Iran, which led to significant declines in oil prices—specifically WTI fell by 0.54%, and Brent was down 0.41%. This contributed to a renewed interest in riskier assets, allowing chip stocks to rebound sharply. Notable gains included Intel up 11.19%, and Micron rising 9.87%. Nvidia, seen as the sector leader, climbed by 1.73%.
Overall, as of June 8, 2026, despite US benchmark indexes trading relatively flat, signs of recovery in semiconductor stocks have begun to materialize following the previous week’s substantial losses.
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