Broadcom AI guidance miss triggers 7% Micron fall
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- Broadcom posted Q2 FY2026 non‑GAAP EPS of $2.44 and revenue of $22.19 billion, beating expectations, but forecast Q3 AI chip sales of $16 billion, below the $17.2 billion estimate.
- Broadcom shares fell 14% to $411 after the guidance, triggering a broader semiconductor sell‑off.
- Micron stock dropped about 7% to $1,004 in mid‑morning trading, despite no company‑specific news, as a sympathy move to Broadcom’s outlook.
- SanDisk fell 3% as the AI outlook disappointment spread across the memory chip complex.
- Western Digital fell 2% in the same sell‑off.
- Micron reported Q1 FY2026 revenue of $13.64 billion, up 57% YoY, with cloud memory revenue of $5.28 billion and HBM orders extending into 2027.
Why it matters: Investors in AI‑focused memory firms see immediate losses as the market re‑prices Broadcom’s softer AI revenue outlook; Micron’s 7% slide erodes gains from a 57% revenue surge and long‑term HBM demand, while rivals like SanDisk and Western Digital also feel the hit.
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