Broadcom's latest quarter showed rising revenue and strong demand for its AI chips. In a normal market, that would be enough to earn polite applause. But this is not a normal market. The company's guidance for AI-chip revenue did not clear the very high bar investors had set, and the stock fell sharply before the opening bell. The decline was not small, either: Broadcom was down more than 15% in premarket trading, with  the move erasing more than $270 billion in market value if it held through the session. In today's AI market, being good is not always good enough.

Let's not forget that Broadcom had climbed nearly 55% this quarter before the selloff. When a stock has already run that far, investors are not just buying performance, they are buying perfection. So when Broadcom kept its long-range forecast of $100 billion in AI-chip sales and delivered results that were solid but not thrilling, the stock went south.

The reaction spread quickly. Micron, AMD, Marvell, Qualcomm, Intel, and Super Micro Computer all came under pressure. Nasdaq futures led the decline, while the S&P 500 also slipped. The Dow, less exposed to the highest-flying technology trade, held up better. That split says a lot about the market right now. Investors are not running from stocks entirely, they are questioning how much they should pay for the parts of the market that have already been priced as if the future arrived early and sent an invoice.

Broadcom's stumble came at a sensitive moment. Wall Street had been enjoying a powerful rally, with the S&P 500 coming off a stretch of nine straight weekly gains and record highs.

The Middle East remains a major source of uncertainty. Reports described continued violence despite earlier ceasefire efforts involving the United States and Iran. Kuwait reported that an Iranian missile and drone strike hit its international airport, killing one person and injuring dozens more, while Iran said it had retaliated against U.S. military bases in Kuwait after earlier U.S. airstrikes. Other reports said Trump had told aides he would consider ending the ceasefire with Iran if Tehran killed American troops, while still appearing reluctant to restart a larger war.

Oil prices moved lower on Thursday, helped by signs that investors were not yet assuming the worst. Brent and West Texas Intermediate both fell, even though prices remained elevated near the mid-$90s per barrel in the reports. The war has kept attention on the Strait of Hormuz and the fragility of energy flows through the region. Gulf governments are now spending heavily on pipelines, rail corridors, storage hubs, and alternative routes to reduce dependence on that chokepoint. That may become one of the more lasting economic consequences of the conflict: a redrawn energy map.

In other corporate news, CrowdStrike reported higher fiscal first-quarter adjusted earnings and revenue, yet its shares dropped after operating expenses rose. Coinbase, Robinhood, and Strategy fell as bitcoin extended its slide to its lowest intraday level since early February. Meta slipped after reports that it had delayed the release of its newest AI model to developers. Quantinuum was set to begin trading after raising $1.68 billion in an upsized IPO. SpaceX's investor roadshow was beginning ahead of a planned market debut, with hopes of raising $75 billion in a record IPO that could value the company at $1.75 trillion.

That last figure is a useful reminder of where we are. Even on a day when investors are supposedly becoming more cautious, the market is still entertaining trillion-dollar ambitions with a straight face.

Today's economic highlights:

See the full calendar here.

  • Dollar index: 99.253
  • Gold: $4,509
  • Crude Oil (BRENT): $94.48 (WTI) $92.42
  • United States 10 years: 4.46%
  • BITCOIN: $62,442

In corporate news:

  • LG Group to adopt 10,000 Nvidia GPUs, according to Maeil.
  • Nvidia expands its Enterprise AI Stack with the acquisition of Kumo AI.
  • IBM and Google Cloud announce a strategic partnership to launch a new Google Cloud practice to accelerate production-grade AI deployment and modernize core systems.
  • Amazon expands European operations and unveils an autonomous robot.
  • Tesla expands its unsupervised robotaxi service across the Austin metro area.
  • Costco reports 15% sales growth in May.
  • AbbVie's ovarian cancer therapy receives a recommendation from the UK's drug-cost watchdog.
  • Broadcom plunges 14% in after-hours trading following its quarterly results.
  • CrowdStrike beats consensus and raises its guidance, but the stock drops 11% in after-hours trading.
  • Netskope (cybersecurity) falls 20% following quarterly results that were received negatively.
  • Alphabet has raised its fundraising target to $84.75 billion from the $80 billion announced two days earlier.
  • JPMorgan, through Jamie Dimon, will promote SpaceX's IPO to its high-net-worth clients. Morgan Stanley and Goldman Sachs have been selected to lead the IPO, according to multiple sources.
  • Stripe, Visa, Mastercard, and Coinbase plan to form a consortium to create a stablecoin, according to The Information.
  • The Glazer family is reportedly considering selling its stake in Manchester United, according to Bloomberg.
  • Alnylam and Inceptive sign a $2 billion AI-driven drug discovery agreement.
  • Innio raises $2.43 billion in its U.S. IPO.
  • Meta repeatedly delays the launch of its new AI model for developers, according to the WSJ.
  • The UK health regulator recommends AbbVie's treatment for ovarian cancer.
  • A subsidiary of Comcast begins construction of a theme park in Bedford.
  • Autodesk signs a collaboration agreement with Amazon Web Services to integrate AI capabilities into its software.
  • Hanwha Aerospace suspends production in South Korea for two days following a fatal fire.
  • The CEO of TSMC is optimistic, as the AI boom shows no signs of slowing down.
  • Today's key earnings reports: Ciena Corporation, Fastenal Company, Samsara Inc., Rubrik, Inc., Planet Labs PBC, lululemon athletica, Guidewire Software, The Cooper Companies, Brown-Forman Corporation, DocuSign.

Analyst Recommendations:

  • Cms Energy Corporation: Jefferies downgrades to hold from buy and reduces the target price from USD 88 to USD 74.
  • Essent Group Ltd.: Keefe Bruyette & Woods upgrades to outperform from market perform with a target price of USD 73.
  • Medtronic Plc: BTIG upgrades to buy from neutral with a target price of USD 90.
  • Murphy Oil Corporation: KeyBanc Capital Markets upgrades to overweight from sector weight with a target price of USD 48.
  • Venture Global, Inc.: JP Morgan upgrades to overweight from neutral with a price target raised from USD 16 to USD 17.
  • Boston Scientific Corporation: Truist Securities maintains its buy recommendation and reduces the target price from USD 85 to USD 64.
  • Crowdstrike Holdings, Inc.: Canaccord Genuity maintains its hold recommendation and raises the target price from USD 400 to USD 675.
  • Intel Corporation: Huatai Research maintains its buy recommendation and raises the target price from USD 112 to USD 150.
  • Macy's, Inc.: Citi maintains its neutral recommendation and raises the target price from USD 18 to USD 22.
  • Marvell Technology Group Ltd: SinoPac Securities maintains its buy recommendation and raises the target price from USD 120 to USD 380.
  • Ollie's Bargain Outlet Holdings, Inc.: UBS maintains its neutral recommendation and reduces the target price from USD 125 to USD 87.
  • Palo Alto Networks, Inc.: Cmb International Capital Corp Ltd maintains its buy recommendation and raises the target price from USD 222.70 to USD 299.70.
  • Rocket Lab Corporation: Clear Street LLC maintains its buy recommendation and raises the target price from USD 98 to USD 129.
  • Thor Industries, Inc.: BNP Paribas maintains its underperform recommendation and reduces the target price from USD 79 to USD 59.
  • Veeva Systems Inc.: BMO Capital Markets maintains its market perform recommendation and reduces the target price from USD 220 to USD 175.