Quick Read <\/p>\n
Broadcom’s Q3 AI chip guidance of $16 billion missed the $17.2 billion estimate, sending AVGO down 14% and dragging MU down 7% in sympathy.<\/p>\n<\/li>\n
SanDisk fell 3% and Western Digital dropped 2% as Broadcom’s underwhelming AI outlook spread contagion across the broader memory chip complex.<\/p>\n<\/li>\n
Micron’s revenue grew 57% last quarter and HBM orders stretch into 2027, but its 865% run amplifies every AI sentiment wobble.<\/p>\n<\/li>\n
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Broadcom wasn’t one of them. Get them here FREE<\/a>.<\/p>\n<\/li>\n<\/ul>\n Shares of Micron Technology<\/strong> (NASDAQ:MU<\/a>) are down by about 7% to $1,004 in mid-morning trading on Thursday, June 4, after Broadcom<\/strong> (NASDAQ:AVGO<\/a>) delivered an AI chip outlook that markets viewed as underwhelming. Broadcom shares are down 14% to $411 and change.<\/p>\n The drop comes despite no Micron-specific news. It’s evidently a sympathy move tied to Broadcom’s post-earnings reaction, which has pulled the entire memory and AI chip complex lower into late morning.<\/p>\n The Broadcom stock slump is a trigger for today’s broad semiconductor reset. The AI capex narrative that powered MU stock’s parabolic run is being repriced in real time.<\/p>\n Broadcom’s AI Guidance Miss Sparks the Selloff <\/p>\n Broadcom beat on the headline numbers. The company’s Q2 FY2026 non-GAAP EPS came in at $2.44 vs. $2.40 expected, and revenue hit $22.19 billion vs. $22.12 billion expected. Also, Broadcom’s AI semiconductor revenue surged 143% year over year to $10.8 billion.<\/p>\n However, the forward guidance is where sentiment cracked. Broadcom projected third-quarter AI chip sales of $16 billion, below analysts’ estimates of $17.2 billion, and notably did not raise its 2026 AI semiconductor sales forecast.<\/p>\n Broadcom CEO Hock Tan stated, “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” The figure was strong, yet it sat below whisper expectations for hyperscaler AI orders, and that’s the gap that traders are punishing.<\/p>\n The analyst who called NVIDIA in 2010 just named his top 10 stocks and Broadcom wasn’t one of them. Get them here FREE<\/a>.<\/p>\n Contagion Spreads Across Memory and AI Names <\/p>\n Micron stock is collateral damage today. As a key supplier of high-bandwidth memory (HBM) for AI accelerators, MU stock trades in lockstep with AI capex sentiment, and Broadcom’s softer-than-hoped guide reset the bar for the entire complex.<\/p>\n The selloff extended across the memory group. SanDisk<\/strong> (NASDAQ:SNDK<\/a>) stock is off 3%, and Western Digital<\/strong> (NASDAQ:WDC<\/a>) stock is down 2%. CrowdStrike<\/strong> (NASDAQ:CRWD<\/a>) stock is also lower after its own earnings, reinforcing a risk-off tone toward extended AI winners.<\/p>\n Micron stock’s pullback follows a parabolic run. The stock is up 865% over the past year over the past year despite today’s sell-off. Stretched names tend to get hit the hardest when sentiment turns, and that’s apparently what’s playing out.<\/p>\n The Demand Story Versus the Tape <\/p>\n Micron’s fundamentals haven’t changed today. The company’s most recent quarter (Q1 FY2026) showed revenue of $13.64 billion, up 57% year over year, with Cloud Memory revenue nearly doubling to $5.28 billion at 66% gross margins. Micron Technology CEO Sanjay Mehrotra has pointed to HBM order books stretching into 2027.<\/p>\n At the same time, Polymarket’s same-day market is pricing a 98% probability that MU closes lower today, while the modal week-end outcome sits near $1,020 at a 42% probability. The crowd reads this as overdone rather than broken, though it expects stabilization, not a sharp snap back.<\/p>\n The honest framing is straightforward. The AI memory demand story remains intact, but parabolic charts carry sharp pullback risk whenever the macro AI capex narrative wobbles, and today is a textbook example.<\/p>\n What to Watch Next <\/p>\n Investors can watch for whether sector sentiment stabilizes into the close, particularly around hyperscaler capex commentary from Broadcom’s competitors and customers. The $890 area has emerged as a key support zone in the prediction markets, with a 97% probability of holding by week-end.<\/p>\n Careful investors may want to size their positions with this kind of two-way volatility in mind. Micron’s next earnings update and any incremental HBM commentary from hyperscalers could reset the narrative quickly, in either direction.<\/p>\n The analyst who called NVIDIA in 2010 just named his top 10 AI stocks <\/p>\n