Broadcom’s quarterly earnings report triggered a significant sell-off across the semiconductor sector, despite the company beating expectations. While Broadcom’s own stock fell sharply, Micron Technology’s share price also plunged nearly 8%, pulling it below the $1,000 mark after reaching a yearly high. Analysts suggest the drop stems from investor fatigue with AI narratives and sky-high expectations, rather than any fundamental change at Micron.
A single earnings call from Broadcom precipitated a sector-wide decline in semiconductor stocks. Broadcom reported its Q2 earnings on Thursday and beat all market expectations, with AI chip sales surging 143%.
Despite raising guidance, investors punished Broadcom stock, NASDAQ: AVGO, which crashed 12.60%. Unrelated Micron Technologies, NASDAQ: MU, saw its stock plunge 7.80% in collateral damage. Micron stock had just surged above $1,000, touching a yearly high of $1,089 before the sell-off.
The recent pullback in Micron stock’s price has less to do with its financials and more to do with AI fatigue and expectations. This mirrors the pattern seen with Nvidia, where even robust earnings can lead to a post-call stock decline.
Wall Street commentators claim that this could be the last chance for traders to accumulate below $1,000. Institutional funds are aware Micron has locked in multi-year contracts worth billions of dollars, creating a financial moat.
This is a Broadcom-driven crash, and Micron Technologies’ fundamentals remain intact according to market observers. The company had no major news on Thursday, making it a normal trading day before the sector downturn.
Smart money is not too worried about a downturn and remains in MU for the long term. In conclusion, some analysts suggest this could very well be the last entry point below $1,000 in Micron stock for retail investors.
