Broadcom (AVGO) shares plunged about 15% in pre-market trading on Thursday, after its earnings and AI outlook failed to clear investors’ lofty expectations, sparking a broader selloff across semiconductor stocks.
Advanced Micro Devices (AMD) fell roughly 4%, Micron Technology (MU) dropped 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 capex spending and robust earnings from several chipmakers.
Broadcom’s results show that investors are demanding not just strong growth, but consistently rising guidance.
The weakness is spilling over into former bitcoin miners that have moved into AI infrastructure, with Hut 8 (HUT), IREN (IREN) and Cipher Mining (CIFR) all down about 5% in premarket trading.
The Nasdaq was down around 1%, while the S&P 500 was little changed.
More to come on this, but bitcoin has interestingly turned higher as the AI trade stumbles, climbing back to $63,600, or nearly 4% above its overnight low.