{"slug": "broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market", "title": "Broadcom’s underwhelming results are dragging the AI complex and the wider market lower", "summary": "Broadcom’s failure to raise its AI revenue target for fiscal 2027 triggered a 12% premarket stock drop, dragging down the broader AI complex and major indices. The semiconductor company’s full-year guidance only narrowly exceeded Wall Street expectations, disappointing investors who had driven shares higher after customer Alphabet announced an $80 billion equity raise. Nasdaq 100 futures fell 1.1% and S&P 500 futures dropped 0.74% as AI-linked stocks including CrowdStrike, Micron, and AMD also declined.", "body_md": "# Broadcom’s underwhelming results are dragging the AI complex and the wider market lower\n\nThe company didn’t raise its AI goal post for next year, despite an $80 billion equity raise from one of its biggest customers.\n\nNot a sentence we've been used to writing these last few weeks: artificial intelligence stocks are down, dragging major indices down with them, as [Broadcom](https://robinhood.com/us/en/stocks/AVGO/?source=sherwood) failed to move up its goal post for AI chip revenue.\n\nThe semiconductor company reported earnings results and gave a full-year guidance that was [just a smidge above Wall Street expectations. ](https://sherwood.news/tech/broadcom-earnings-guidance-top-analysts-expectations/)Perhaps more concerning to investors: on a call with analysts, CEO Hock Tan said the company is keeping its AI semiconductor revenue guidance for its fiscal 2027 at “in excess of $100 billion.”\n\nThat seems to have have disappointed investors, with the stock off more than 12% in premarket trading. However, it's worth noting that Broadcom came into the print absolutely red-hot; the stock popped earlier this week after one of its biggest customers, [Alphabet](https://robinhood.com/us/en/stocks/GOOGL/?source=sherwood), announced an [$80 billion+ equity raise](https://sherwood.news/markets/alphabets-80-billion-equity-raise-is-a-signal-that-the-ai-party-can-continue/). Trading at around $421 in the premarket puts it back to where it was exactly one week ago, so it's not exactly a huge derailment.\n\nNevertheless, the wider AI complex is under some pressure this morning.[CrowdStrike](https://robinhood.com/us/en/stocks/CRWD/?source=sherwood) — which also came into earnings on a tear — has been given the same treatment by traders overnight, despite beating estimates and boosting its guidance.\n\nElsewhere, [Micron](https://robinhood.com/us/en/stocks/MU/?source=sherwood) and [Sandisk](https://robinhood.com/us/en/stocks/SNDK/?source=sherwood), which last week got Wall Street-high price targets [from Susquehanna](https://sherwood.news/markets/micron-and-sandisk-rally-on-new-street-high-price-targets-from-susquehanna/), fell as well, as did [AMD](https://robinhood.com/us/en/stocks/AMD/?source=sherwood), [Arm Holdings](https://robinhood.com/us/en/stocks/ARM/?source=sherwood), and [Qualcomm](https://robinhood.com/us/en/stocks/QCOM/?source=sherwood). [Marvell Technology](https://robinhood.com/us/en/stocks/MRVL/?source=sherwood), a fellow chipmaker that recently soared after [Nvidia](https://robinhood.com/us/en/stocks/NVDA/?source=sherwood) CEO Jensen Huang called it the next [“trillion-dollar company](https://sherwood.news/markets/nvidia-jensen-huang-says-marvell-will-be-the-next-trillion-dollar-company/),” also gave back some of its latest gains.\n\nAnd, of course when you arrived at a record six consecutive closes by way of AI-powered gains, it stands to reason that when AI falters, the wider market does too. Futures for the tech-heavy Nasdaq Composite fell by 1.1% and the S&P 500 fell by 0.74% as of 6:20 a.m. EST.", "url": "https://wpnews.pro/news/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market", "canonical_source": "https://sherwood.news/markets/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market-lower/", "published_at": "2026-06-04 10:12:45+00:00", "updated_at": "2026-06-04 10:55:43.721058+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure"], "entities": ["Broadcom", "Alphabet", "Hock Tan"], "alternates": {"html": "https://wpnews.pro/news/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market", "markdown": "https://wpnews.pro/news/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market.md", "text": "https://wpnews.pro/news/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market.txt", "jsonld": "https://wpnews.pro/news/broadcoms-underwhelming-results-are-dragging-the-ai-complex-and-the-wider-market.jsonld"}}