The semiconductor sector just had one of those days where everything that could go wrong did. Micron Technology and Intel led a broad retreat in chip stocks after Broadcom’s fiscal Q2 earnings landed with a thud, missing the sky-high expectations Wall Street had built around AI chip revenues.
The damage was swift and widespread. The iShares Semiconductor ETF (SOXX) fell roughly 10% in a single session, while the leveraged Direxion 3x Bullish Semiconductor ETF (SOXL) cratered by about 30%.
What actually happened
Broadcom reported its fiscal Q2 results on June 4, 2026, and the numbers told a story investors didn’t want to hear. The company’s AI chip forecasts fell short of expectations, and more importantly, guidance didn’t raise full-year projections.
Micron’s share price dropped over 7%, with some reports citing intraday declines as steep as 10-13%. Intel fared no better, shedding several percentage points with some sessions showing losses near 11%. The PHLX Semiconductor Index and related ETFs suffered severe single-day losses as the selling pressure cascaded through the entire chip complex.
