NVDA, INTC, AMD, MU: Major Chip Stocks Fall For Second Day After AVGO's Soft AI Guidance

• Micron shares fell 3.3%, leading the declines in the chips space.
• Major chip stocks declined for a second day after Broadcom’s results. 
• Stocktwits sentiment for SOXX dropped lower in the ‘extremely bearish’ zone.

Micron shares fell 3.3% in premarket trading on Friday, leading declines in semiconductor stocks for a second day after a softer-than-expected outlook from chip giant Broadcom triggered a global selloff in semiconductor stocks.

Intel stock dropped 2.8%, and Advanced Micro Devices shares fell 2.8% for a second day. Nvidia’s stock was down 1.4% at the time of writing.

The move signals profit taking and a reset of sentiment in the chip space, after major stocks ran up sharply in recent months on surging demand for AI accelerators amid a rapid buildout of new data centers.

The iShares Semiconductor ETF (SOXX) has nearly doubled year to date, compared to the 11% gains in the benchmark S&P 500. 

Broadcom’s Results Spark AI Selloff

Broadcom reported its second-quarter fiscal results on Wednesday evening, beating on both revenue and profit, though its guidance left investors wanting more. 

The custom AI chipmaker projected $16 billion in AI chip revenue in the third quarter, much below estimates of $17.2 billion, and kept its fiscal year 2027 outlook unchanged at $100 billion. AVGO stock tumbled 12.6% on Thursday, marking its steepest single-day decline since January 2025, and fell 2% in Friday’s premarket session.

Retail View On Semicon

The sell in chip stocks appeared to cause some panic among retail investors. On Stocktwits, the retail sentiment for SOXX fell even lower in the ‘extremely bearish’ zone (8/100).

“$OSXX this is looking bad. Had a textbook hanging man on the daily yesterday and bearish confirmation today with the massive gap down and red close. Hanging mans happen all the time but means nothing without bearish confirmation the next day which we got,” a trader said.

However, the sentiment was ‘neutral’ for MU, and ‘bullish’ for NVDA and AMD, and ‘bearish’ for INTC. Most of these stocks rallied this week on announcements from the Computex trade conference in Taiwan.

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