Philadelphia Semiconductor Index Falls Over 4%, Broadcom Drops Over 14% Leading the Sector

On June 4, the Philadelphia Semiconductor Index fell over 4%, with Broadcom experiencing a significant drop of over 14%, leading the decline in the U.S. semiconductor sector. Arm and Micron Technology both fell over 6%, while AMD and Marvell Technology dropped over 5%. ON Semiconductor fell over 4%, and Qualcomm, Applied Materials, and GlobalFoundries each declined over 3%. Intel, Analog Devices, and ASML saw declines of over 2%. In terms of news, Broadcom reported total revenue of $22.187 billion for Q2 of fiscal year 2026, a year-on-year increase of 48%, with AI revenue reaching $10.8 billion, up 145%, both exceeding market expectations. Looking ahead to the third fiscal quarter, the company expects AI revenue to reach $16 billion, a quarter-on-quarter increase of 48% and a year-on-year increase of 210%. Citigroup analysts pointed out that the $16 billion AI revenue guidance is below their expected $17.5 billion and also below the market consensus expectation of $16.3 billion. Meanwhile, Broadcom's CEO merely reaffirmed the existing target of 'over $100 billion' in AI revenue for fiscal year 2027 without any enhancements, which directly triggered market disappointment.