Micron Technology lost roughly $94 billion in market capitalization on June 4 after Broadcom’s disappointing AI chip guidance sent shockwaves through the entire semiconductor sector. Micron shares fell 7.7% in what became the company’s steepest single-day value decline on record.
The culprit wasn’t anything Micron did. It was Broadcom reporting AI chip revenue guidance of $16 billion for the quarter, about $1.2 billion below what analysts expected. That miss, combined with Broadcom’s refusal to raise its full-year AI revenue target of $100 billion, was enough to trigger a sector-wide panic.
Broadcom’s historic collapse sets the tone
Shares of AVGO plunged as much as 15% during the session before closing down approximately 12.6%. The damage in dollar terms was staggering: an estimated $280 to $286 billion in market capitalization evaporated in a single trading session, making it the largest one-day market-cap loss for any US company in history.
Broadcom’s $16 billion quarterly AI chip guidance fell $1.2 billion short of the $17.2 billion analysts had penciled in. Broadcom also declined to increase its $100 billion full-year AI semiconductor revenue target.
