- Shares of major chipmakers fell on September 3 following Broadcom's AI chip sales forecast.
- Broadcom shares dropped 6.6% to $343.03, the largest decline among chip stocks.
- SK Hynix shares fell 4.09% to $158.24 amid the broader chip stock selloff.
Shares of major chipmakers dropped during the trading session on Thursday, September 3 after Broadcom's forecast for AI chip sales failed to impress investors.
Among these stocks, Broadcom dropped the most, falling 6.6% to $343.03, followed by Sk Hynix, down 4.09% at $158.24. Micron traded 2.43% lower at $932.85, SanDisk dipped 2.09% to $1,520.9, while AMD slipped 1.3% to $451.12.
The latest decline in chip stocks, which have remained volatile for some time now comes after Broadcom declared quarterly earnings and forecast for AI chips. The company's forecast for the fourth quarter was less impressive compared to Wall Street estimates. Revenue is estimated to be at $34.8 billion for the period, which runs through October, the company said. According to data collected by Bloomberg, analysts predicted $35.1 billion on average, some estimates went over $36 billion.
Chip stocks have remained volatile amid cycles of profit-taking and massive sell-offs, as concerns grow over heavy artificial intelligence spending by big tech companies, and pressures from new domestic chip production, reports said.
The recent dip also come amid renewed tensions in the Middle East as President Donald Trump said the US is prepared to target Iran “at any time”, but he does not expect the clashes to last “too long”. He further claimed that Washington has “almost total control” of the Strait of Hormuz.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
