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U.S. stock futures pointed lower Thursday as a revenue miss from Broadcom $AVGO -0.49% rattled the AI trade and Middle East tensions continued to weigh on investor sentiment.
Among index futures, the Nasdaq $NDAQ -1.25% 100 was the biggest laggard, down 1.31%, with S&P 500 contracts off 0.47%. Dow Jones Industrial Average futures moved in the opposite direction, adding 309 points, or 0.61%.
Broadcom stock dropped 13% before the opening bell after the chipmaker's fiscal second-quarter results and forward guidance fell short of investor expectations. Broader chip stocks absorbed the hit as well, with the VanEck Semiconductor ETF sliding more than 3% ahead of the open, according to CNBC. Arm Holdings, Marvell Technology, and Micron $MU +1.45% Technology were each off roughly 6%. Cybersecurity firm CrowdStrike $CRWD -2.78% stock fell 10% after issuing weak second-quarter revenue guidance.
As previously reported, Broadcom posted second-quarter revenue of $22.19 billion, up 48% year over year, with AI chip sales reaching $10.8 billion — a 143% increase from the same period a year earlier. But the company's forecast for AI semiconductor revenue of $16 billion in the current quarter came in below analyst expectations of $17.2 billion. On the earnings call, Broadcom President and CEO Hock Tan also acknowledged that Google $GOOGL -0.79% would likely draw on multiple chip suppliers and warned that rapidly growing AI semiconductor sales were weighing on the company's overall gross margins — disclosures that deepened the stock's decline, according to CNBC.
