Overview
- Broadcom, which reported results on Thursday, projected about $16 billion in third-quarter AI‑chip sales versus analysts' roughly $17.2 billion estimate and saw its stock fall about 12–15% in premarket trading.
- The downgrade in AI‑infrastructure expectations triggered a selloff across semiconductor and AI‑linked software names and pushed Nasdaq and S&P futures lower as investors reassessed richly valued winners.
- CrowdStrike shares also slid after investors reacted to weaker-than-expected net new annual recurring revenue growth despite the company’s continued AI investments and a recent rally.
- Risk appetite spilled into crypto with bitcoin dropping roughly 4–7% as traders reduced exposure, and energy and inflation risks from the Middle East kept markets sensitive to Fed policy moves.
- Large capital plans from SpaceX and public firms such as Alphabet, plus anticipated IPOs from private AI developers, mean investors may need to sell existing holdings to fund new supply which could deepen short-term volatility.