Micron Drops 7% as Broadcom’s Disappointing AI Outlook Triggers a Semiconductor Selloff

Shares of Micron Technology (NASDAQ:MU) are down by astir 7% to $1,004 successful mid-morning trading connected Thursday, June 4, aft Broadcom (NASDAQ:AVGO) delivered an AI spot outlook that markets viewed arsenic underwhelming. Broadcom shares are down 14% to $411 and change.

The driblet comes contempt nary Micron-specific news. It's evidently a sympathy determination tied to Broadcom's post-earnings reaction, which has pulled the full representation and AI spot analyzable little into precocious morning.

The Broadcom banal slump is simply a trigger for today's wide semiconductor reset. The AI capex communicative that powered MU stock's parabolic tally is being repriced successful existent time.

Broadcom's AI Guidance Miss Sparks the Selloff

Broadcom bushed connected the header numbers. The company's Q2 FY2026 non-GAAP EPS came successful astatine $2.44 vs. $2.40 expected, and gross deed $22.19 cardinal vs. $22.12 cardinal expected. Also, Broadcom's AI semiconductor gross surged 143% twelvemonth implicit twelvemonth to $10.8 billion.

However, the guardant guidance is wherever sentiment cracked. Broadcom projected third-quarter AI spot income of $16 billion, beneath analysts' estimates of $17.2 billion, and notably did not rise its 2026 AI semiconductor income forecast.

Broadcom CEO Hock Tan stated, "The momentum continues and successful Q3 we expect semiconductor gross from AI to turn implicit 200 percent year-over-year to $16.0 billion." The fig was strong, yet it sat beneath susurration expectations for hyperscaler AI orders, and that's the spread that traders are punishing.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Broadcom wasn't 1 of them. Get them present FREE.

Contagion Spreads Across Memory and AI Names

Micron banal is collateral harm today. As a cardinal supplier of high-bandwidth representation (HBM) for AI accelerators, MU banal trades successful lockstep with AI capex sentiment, and Broadcom's softer-than-hoped usher reset the barroom for the full complex.

The selloff extended crossed the representation group. SanDisk (NASDAQ:SNDK) banal is disconnected 3%, and Western Digital (NASDAQ:WDC) banal is down 2%. CrowdStrike (NASDAQ:CRWD) banal is besides little aft its ain earnings, reinforcing a risk-off code toward extended AI winners.