Gotrade News - Semiconductor stocks suffered their worst single day in years on Friday, June 6, 2026. The iShares Semiconductor ETF (SOXX) plunged roughly 10% to $540 amid heavy selling.
The trigger was Broadcom's disappointing guidance, even as the company posted record quarterly revenue. The selloff dragged the Nasdaq down 4%, its worst session since April 2025.
Key Takeaways
- SOXX fell about 10% on June 6, 2026, leading a broad semiconductor selloff.
- Broadcom posted record revenue of $22.2 billion, but its guidance left investors disappointed.
- Chip stocks rebounded sharply early this week, with Intel up 11.19% and Micron up 9.87%.
According to The Motley Fool, Broadcom reported fiscal second-quarter revenue of $22.2 billion, up 48% year over year. The company's AI chip revenue surged 143% to $10.8 billion during the same period.
However, guidance for the current quarter projected only $16 billion in AI chip revenue. The fiscal 2027 target of $100 billion was also left unchanged, which disappointed the market.
As reported by The Motley Fool, Broadcom CEO Hock Tan said AI bookings had topped $30 billion. He stressed that demand for AI chips remained "simply insatiable" across major customers worldwide.
The selling spread broadly across the semiconductor sector on the same trading day. Marvell dropped 17%, Micron fell 13%, while Intel and AMD each declined 11%.
Broadcom (AVGO) itself slid as much as 20% cumulatively over the stretch of pressure. Negative sentiment briefly clouded every major name across the global chip space.
Macro Pressures Add To The Strain
A strong May jobs report added further pressure on technology stocks last week. The report showed 172,000 jobs added, double what analysts had expected.
Per The Motley Fool, the unemployment rate stood at 4.3% during the reporting period. The 10-year Treasury yield also climbed to 4.54%, weighing on growth stock valuations.
Higher yields tend to erode the appeal of large-cap technology stocks for investors. Many responded by trimming exposure to semiconductor names that had previously surged sharply.
Entering the new week, market sentiment began improving as Israel-Iran tensions eased. According to Investing.com, the de-escalation pushed oil prices meaningfully lower.
The drop in oil was visible as WTI fell 0.54% and Brent declined 0.41%. These conditions gave room for renewed investor appetite toward riskier assets.
As reported by Investing.com, chip stocks rebounded sharply after the prior week's deep losses. Intel jumped 11.19%, Micron rose 9.87%, and Marvell gained 9.63% in the session.
Nvidia (NVDA) as the sector bellwether also climbed 1.73% in the rebound. Applied Materials rose 8.64% while ASML added 6.54% during the same trading window.
Investors can track the broader sector through the VanEck Semiconductor ETF (SMH). US benchmark indexes traded relatively flat heading into this week's open.
Per Investing.com, S&P 500 futures slipped 0.2% to 7,398.75 on June 8, 2026. Nasdaq 100 futures fell 0.3%, while Dow futures eased 0.2% into the session.
Sources
