Broadcom's Q2 FY2026 results beat on the headline — AI chip revenue surged 143% year-over-year to $10.8 billion, total revenue up 48% to $22.2 billion — but its Q3 AI revenue guidance of $16 billion landed below Wall Street's $17.2 billion estimate, and the market revolted. AVGO shed roughly 12% Thursday and kept sliding Friday, dragging the Nasdaq down 4% on June 5 and wiping an estimated $1 trillion from chip stock market caps. The iShares Semiconductor ETF (SOXX) fell 10%, its worst single-session drop since March 2020.
The Broadcom-triggered selloff swept through every AI-adjacent semiconductor name: Marvell lost 16%, Micron plunged 13%, AMD fell 6.3%, and Nvidia dropped roughly 5%, while Intel joined the rout. Analysts are calling it a coordinated unwind of the "Parabolic 7," a crowded basket of AI chip stocks that had accumulated enormous gains in 2026. The Philadelphia Semiconductor Index dropped over 6%, the S&P fell 0.63%, and the Dow barely held positive as the Nasdaq bore the full weight of the rotation.
ARM Holdings jumped as much as 15% this week after Nvidia unveiled a new AI chip for Windows PCs built on ARM's architecture at Computex, adding meaningful royalty upside to an already red-hot story. The CEO told Bloomberg on June 2 that ARM's $15 billion AI chip revenue target could arrive ahead of schedule, prompting RBC to raise their price target to $260 and Mizuho to set a Street-high of $360. The stock is up over 250% in 2026 but couldn't escape the Broadcom-driven selloff — even the week's standout winner got dragged down.
CrowdStrike reported Q1 FY2027 revenue of $1.39 billion, up 26% year-over-year, with adjusted EPS of $1.10 (beat vs. $1.07 expected), record net new ARR of $256 million (up 32%), and raised full-year guidance by 520 basis points at the midpoint. The company also announced a 4-for-1 stock split with a June 25 record date and split-adjusted trading beginning July 2. Despite the clean beat and the split announcement, shares fell 9% as a billings shortfall overshadowed the headline — a recurring theme this earnings season where expectations are simply very high.
Apple's Worldwide Developers Conference opens Monday, June 8, and Morgan Stanley called it a "key catalyst" for the stock's AI positioning, with a scenario where Siri 2.0 and a clear agentic AI vision push valuation from the bank's current $330 price target to as high as $440. The firm cited the 20-point outperformance that followed WWDC 2024 as historical precedent and argued that Apple Intelligence 2.0 could become a consumer-level agentic AI platform at lower cost than incumbents. Apple has been conspicuously absent from the AI winner narrative in 2026 — Monday could change that quickly.
Palantir gained roughly 2% on June 4 while the rest of AI tech sold off, supported by news that AIP and Gotham have landed multi-year program-of-record roles across U.S. and allied militaries — funded, long-duration contracts that structurally reduce revenue cyclicality. The company had already raised its FY2026 revenue growth guidance to 71%, backed by Q1's 104% U.S. revenue growth year-over-year. One watchout: insider selling has been accelerating sharply alongside the bullish fundamentals, a dynamic worth monitoring.
Oracle reports Q4 FY2026 on June 16 after the close, with analyst consensus at $1.95 EPS, and the stock has already run 16% in the run-up on the AI data center infrastructure theme. Cloud infrastructure revenue grew 84% to $4.9 billion in Q3, and remaining performance obligations hit $553 billion — up 325% year-over-year. The critical question analysts are asking: can Oracle build enough capacity to convert that extraordinary backlog into revenue without compressing cloud margins?
MongoDB reported Q1 FY2027 results on May 28: revenue of $687.6 million, up 25% year-over-year, beating the $663.8 million consensus, with adjusted EPS of $1.32 versus $1.18 expected. The beat triggered a wave of analyst upgrades in early June, with the bull case centered on Atlas — MongoDB's cloud database platform — gaining genuine enterprise traction as AI application workloads scale. It's the quieter story of the week, but the fundamentals are clean.
The Motley Fool today weighed AMD against Broadcom as the best AI chip alternative to Nvidia — timely given the sector-wide selloff. AMD's Q1 data center revenue grew 57% year-over-year to $5.8 billion; the stock peaked at $527 in May (up 138% in 2026) before pulling back 6.3% in Thursday's rout alongside the broader chip sector. CEO Lisa Su recently raised the server CPU total addressable market forecast from $60 billion to over $120 billion, growing at more than 35% annually by 2030 — a bold call that, if validated, gives AMD a long runway independent of AVGO's narrative.
Tesla's Full Self-Driving software now has 1.28 million active subscribers, up 51% year-over-year, following launches in China and nine additional international markets this spring. CEO Musk confirmed on the Q1 earnings call that FSD v15 will run on current Hardware 4 computers, ending months of community speculation about whether owners would need new hardware. With monthly fees between $99 and $199, FSD alone could generate $1.3 to $2.6 billion in annual high-margin software revenue, keeping the AI narrative alive for Tesla even in a rough week for the broader sector.
