Overview
- Broadcom reported $22.19 billion in revenue and $2.44 adjusted EPS and then guided third-quarter AI chip sales to $16 billion, which investors saw as weaker than expected and pushed the stock down sharply on Thursday.
- CrowdStrike beat revenue estimates, announced a four-for-one split, and posted ARR of $4.44 billion with $193.8 million of net new ARR, but its slower growth and higher expenses prompted a premarket share drop.
- Markets split after the earnings shock with Nasdaq futures falling and the Dow rising as investors rotated into defensive blue chips while the iShares Semiconductor ETF and other AI suppliers slid.
- Geopolitical moves that eased and then strained Middle East tensions helped swing oil prices and risk appetite, and cryptocurrencies weakened with bitcoin dropping about 4–5%, adding to short-term selling pressure.
- The episode highlights how this concentrated, rapid AI rally made the sector fragile to guidance misses and raises the odds of continued volatility, possible valuation resets for high-growth names, and renewed focus on upcoming jobs and Fed readings.