U.S. stocks movement: Philadelphia Semiconductor Index drops over 4%, Broadcom plunges over 14% leading the semiconductor sector decline

Glonghui, June 4th — The Philadelphia Semiconductor Index dropped over 4%. Broadcom plunged more than 14% after earnings, leading the decline in US semiconductor stocks. Arm and Micron Technology fell over 6%, AMD and Marvell Technology lost more than 5%, ON Semiconductor declined over 4%, while Qualcomm, Applied Materials, and GlobalFoundries dropped over 3%. Intel, Analog Devices, and ASML were down more than 2%.On the news front, Broadcom reported total revenue of $22.187 billion for fiscal Q2 2026, a year-on-year increase of 48%. AI revenue reached $10.8 billion, up 145% year-on-year, both exceeding market expectations. Looking ahead to the third fiscal quarter, the company expects AI revenue to reach $16 billion, a quarter-on-quarter growth of 48% and a year-on-year increase of 210%. Citi analysts pointed out that the $16 billion AI revenue guidance is below their expected $17.5 billion and the market consensus of $16.3 billion. Meanwhile, Broadcom's CEO only reiterated the previous target of "over $100 billion" in AI revenue for fiscal 2027 without raising it, which became the direct trigger for market disappointment.