Shares of Broadcom ( AVGO ) plunged about 15% in premarket trading Thursday after its earnings and AI outlook failed to meet high investor expectations, triggering a selloff in semiconductor stocks.
Advanced Micro Devices (AMD) fell about 4%, Micron Technology (MU) fell about 5%, while Nvidia (NVDA), Marvell Technology (MRVL) and Intel (INTC) also fell.
The weakness comes after semiconductor stocks saw a strong advance in recent weeks, fueled by optimism about capital spending on AI infrastructure and robust profits from several chipmakers.
Broadcom’s results show that investors demand not only strong growth, but also steadily rising forecasts.
The weakness extends to legacy Bitcoin miners who have turned to AI infrastructure, with Hut 8 (HUT), IREN (IREN) and Cipher Mining (CIFR) down around 5% in pre-market trading.
The Nasdaq was down about 1%, while the S&P 500 was little changed.
There’s still a long way to go, but interestingly, Bitcoin has risen as the AI trade stumbles, rallying back to $63,600, almost 4% above its overnight low.
