Broadcom shares fall about 14% after AI guidance disappoints

Broadcom AVGO Hock E. Tan

Broadcom shares dropped in the session after the fiscal Q2 report, a move one press report put at about 14%. Other outlets gave figures from about 12% to 15%; the official close is unconfirmed. The sell-off came despite a revenue and EPS beat, because investors had wanted a higher AI outlook and the third-quarter AI guide of $16.0 billion was the main disappointment.

Reported decline about 14% on June 4, 2026; press estimates range from 12% to 15%
Q3 AI revenue guide $16.0 billion was the main disappointment
Full-year AI revenue target was left unchanged rather than raised, per the same report

AVGO around the story · hourly24 h reaction ▼ 4.91%

Moves this explains

AMD−10.84%Jun 4 · AMD fell 10.8% in a broad chip selloff after Broadcom shares fell about 14% on weak AI guidance the day before, and the May jobs report (172k added, unemployment 4.3%) lifted Fed hike bets. Micron fell 11.6%, Intel 11.8% and Nvidia 5.7%, while the S&P 500 lost 2.4%, gold fell 3.1% and bitcoin 4.4%.AVGO−16.28%Jun 2 · Fell 16.3% to $414.50 after fiscal Q2 2026 results (revenue $22.19B, up 48%) were released at 20:21 UTC, after the US close. Reports said the shares fell about 14% the next session on AI guidance that disappointed. Same day ORCL -8.4%, MSTR -8.1%, PLTR -6.6%, COIN -7.0% fell while the S&P 500 fell 1.1%.INTC−11.80%Jun 4 · Intel fell 11.80% to $96.93 in a broad sell-off: the S&P 500 -2.35%, QQQ -4.68%, AMD -10.84%, MU -11.56%, Bitcoin -4.43% and ETH -10.59%. Coverage ties it to strong May jobs data (172k added, lifting Fed hike bets) and Broadcom shares falling about 14% on AI guidance.META−5.60%Jun 4 · Meta fell 5.60% on a broad risk-off day: the S&P 500 dropped 2.35% and QQQ 4.68%, with AMD -10.84%, Micron -11.56%, Broadcom -6.95% and Nvidia -5.72%. The hot May jobs report (172k jobs, 4.3% unemployment) and Broadcom's AI guidance disappointment were the main market drivers reported. The Financial Times also reported that Meta was weighing a share sale to fund AI spending, which Meta called pure speculation.MU−11.56%Jun 4 · Micron fell 11.56% on June 5, a day the whole AI-chip group fell: Intel -11.8%, AMD -10.84%, NVDA -5.72%, with the S&P 500 down 2.35%. Broadcom's AI guidance on June 4 disappointed, and May payrolls of 172k (against about 80k expected) revived Fed rate-hike worries. Reports differ on Micron's exact decline, from about 7% to 13%.QQQ−4.68%Jun 4 · QQQ fell 4.68% to 701.24 with S&P 500 -2.35%. Hot May payrolls (172k added, unemployment 4.3%) revived Fed hike bets, and chip stocks fell hard after Broadcom's AI guidance disappointed: MU -11.56%, INTC -11.80%, AMD -10.84%, AVGO -6.95%. Bitcoin fell 4.43% and ether 10.59%, and silver fell 8.23%.TSM−6.55%Jun 4 · TSM fell 6.55% in a broad selloff: SPX -2.35%, NVDA -5.72%, AMD -10.84%, MU -11.56%, INTC -11.80% and ETH -10.59%, with gold and bitcoin also lower. The move followed strong May payrolls that lifted Fed hike bets and Broadcom's sharp fall on AI guidance the previous day.MU−7.55%Jun 3 · Micron fell 7.55% to $971.68 after Broadcom's guidance disappointed chip investors. Broadcom beat on fiscal Q2 revenue of $22.19B, but its Q3 AI chip revenue forecast of about $16B came in below the roughly $17.2B analysts expected, and Micron's memory exposure traded down with the AI names.

Source

Value The Markets

Jun 4, 2026

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