Broadcom AI Outlook Triggers Global Semiconductor Sell‑Off

Broadcom reported fiscal Q2 revenue of $22.2 billion, up 48 % year‑over‑year, and AI‑chip sales surged 143 %. However, its guidance for AI‑chip revenue fell short of market expectations, causing the stock to tumble about 12.6 %. The disappointing outlook sparked a broad sell‑off across AI‑related semiconductor shares.

Shares of peers such as AMD, Micron, Marvell, Arm, Samsung Electronics and SK Hynix fell between 5 % and 9 %, wiping out hundreds of billions of market value. The Philadelphia Semiconductor Index shed more than 5 % in a single session, one of its steepest declines since early 2025. Asian markets mirrored the decline: South Korea’s Kospi slipped over 5 %, Japan’s Nikkei fell around 1.3‑1.4 %, and the Shanghai Composite edged lower. The broader AI‑infrastructure spending outlook remains strong, but investors are reassessing valuations after the rapid rally driven by AI hype.

Analysts note that Broadcom’s AI revenue is highly concentrated among a few customers, raising risk if any major buyer reduces orders. The episode highlights the market’s sensitivity to earnings guidance in a sector that has experienced record growth but now faces heightened scrutiny over pricing and demand sustainability.