Chipmaker stocks experienced sharp declines in premarket trading on Thursday, with Broadcom, Micron Technology, and Marvell Technology leading the losses as investor enthusiasm for AI chips waned [1]. Broadcom shares dropped 15.1% ahead of the market open after the company reported weaker-than-expected earnings on Wednesday [1]. This earnings miss triggered a broader retreat from semiconductor and technology stocks, pushing Nasdaq futures 1.4% lower before the opening bell [1].
Micron Technology fell 7.1% and Marvell Technologies declined 7.5% in premarket trading, while other major chipmakers also saw losses: Qualcomm was down 3.9%, Intel fell 4.1%, and AMD dropped 4.3% [1]. The sell-off in chipmakers contributed to a wider downturn in equities, with S&P 500 futures last seen 0.7% lower [1].
HSBC analysts, led by Max Kettner, highlighted a slide in chip prices and a slowdown in AI spending and rollout as significant concerns for the sector [1]. Keith Lerner, CIO and chief market strategist at Truist Wealth, commented that the sell-off was a normal correction after a strong rally, stating, "We've come a long way. Fundamentals are solid. Bull market still deserves a benefit of the doubt, but often markets are two steps forward, one step back. We've had three steps forward, so maybe at least a mini step back, or at least some sideways chop" [1].
CONCLUSION
A weaker-than-expected earnings report from Broadcom triggered a sharp sell-off in chipmaker stocks, leading to significant declines across the semiconductor sector and broader technology market. Analysts cited concerns over falling chip prices and slowing AI investment, but also noted that the correction may be a healthy pause after recent gains.