- Chipmakers fell sharply in premarket trading Thursday, with Broadcom, Micron and Marvell leading the losses.
- Broadcom reported weaker-than-expected earnings on Wednesday.
- The losses pushed Nasdaq futures lower ahead of the opening bell.
Broadcom shares were down 15.1% ahead of the market open after the company, which designs and makes customized AI chips for other technology names,
reported weaker-than-expected earnings on Wednesday.
The fall was part of a broader retreat from chipmakers and other tech stocks ahead of Thursday's market open.
Micron Technology was down 7.1% in premarket trading, while Marvell Technologies had fallen 7.5%.
Futures tied to the tech-heavy
Nasdaq were last seen 1.4% lower.
AI memory chips have been a key theme in the equity market rally in recent weeks. Thursday's retreat led equities markets lower, with the S&P 500 futures last seen 0.7% down.
In a note Thursday, HSBC analysts led by Max Kettner, chief multi-asset strategist, flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their "biggest worries."
John Vinh, equity research analyst at Keybanc Capital Markets, said the growing pressure on Broadcom and other semiconductor stocks is warranted.
"These stocks have all had very strong runs," Vinh told CNBC's "Squawk Box" on Thursday, pointing to repeated upward revisions, especially on the AI front. Vinh suggested that the Broadcom reversal indicates that market expectations have caught up with the chip sector run.
He noted that Broadcom has suffered a degree of share loss within its largest customer, Google, which has started diversifying toward other chip suppliers. "The near-term pull-back makes sense," Vinh explained, but added he remains optimistic on Broadcom.
Keith Lerner, CIO and chief market strategist at Truist Wealth, said that a sell-off was normal after a strong run, adding that "we're due for a rest."
"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."<small>Source: CNBC</small>
Business
Micron, Marvell, and Broadcom lead chipmakers' premarket losses
CNBC
June 04, 2026
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