Broadcom sent shockwaves through the chip sector late Wednesday when it issued weaker-than-expected revenue guidance. The stock dropped 13% on Thursday, erasing $286 billion in market value in a single session.
The selloff spread quickly across the semiconductor space. Advanced Micro Devices fell 2.2%, Micron Technology dropped 2.5%, Nvidia dipped 1.1%, and Taiwan Semiconductor retreated 1.7% in Friday premarket trading.
The S&P 500 has barely moved since Monday’s open, rising less than 0.1% for the week. Futures were down 0.4% Friday morning, putting the index on track to snap a nine-week winning streak.
Chip stocks had been a key driver of the market’s run to record highs. But investors began pulling back after Broadcom’s guidance disappointed, and the selling broadened out from there.
It wasn’t just chipmakers taking hits. Optical products maker Lumentum dropped 3.5% in premarket trading.
Server makers Dell Technologies and Super Micro Computer each fell around 2.7%. These companies have been closely tied to AI infrastructure spending, and they moved lower alongside the chip stocks.
Guidewire Software dropped 14% after its full-year guidance fell short of Wall Street expectations. Samsara fell 3% after the software company said its second-quarter guidance would only meet, not beat, forecasts.
Lululemon slid 12% to 13% after cutting its revenue outlook for both the second quarter and the full fiscal year. The company cited a dispute with its founder and products that have not connected with customers.
Tesla edged up 0.2% after JPMorgan upgraded the stock to neutral from underweight.
Quantum computing company Quantinuum made its Nasdaq debut on Thursday following a highly anticipated IPO priced at $60 per share. Shares briefly surged 13% above the IPO price but gave back nearly all of those gains by the close.
The stock ended its first day at $60.38, up just 0.6% from its offering price. Shares fell another 2% to 3% in Friday premarket trading.
Bitcoin and other cryptocurrencies extended a recent decline, pulling down stocks tied to the crypto market.
Coinbase Global and Robinhood Markets each fell around 0.7% in premarket trading. Strategy dropped 1.4%.
Friday’s broad pullback reflects investor caution after weeks of gains led by AI and chip-related names. Broadcom’s guidance was the trigger, and the selling spread across sectors from semiconductors to software to crypto-linked stocks.
The post Today’s Market Movers: AMD, Nvidia, Micron Fall as Broadcom Selloff Spreads Across Chip Sector appeared first on CoinCentral.
