[New York Stock Exchange] Semiconductor Stocks Weaken on Broadcom Earnings Release

Mixed Opening
Only the Dow Jones Rises 1.5%

After Broadcom's disappointing earnings release led to weakness in the semiconductor sector, the three major U.S. stock indexes showed mixed trends on June 4 (local time). Only the Dow Jones Industrial Average is posting strong gains.

As of 9:53 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average stood at 51,424.21, up 737.14 points (1.45%) from the previous trading day. The S&P 500 Index, focused on large-cap stocks, was down 10.68 points (0.14%) at 7,543.00, while the technology-heavy Nasdaq Index was down 250.43 points (0.93%) at 26,603.54.

New York Stock Exchange. New York, USA – Special Correspondent Yoonju Hwang

The market appears to be influenced by Broadcom's earnings release. Broadcom reported that revenue for the second quarter of fiscal year 2026 (February to April 2026) increased by 48% year-on-year to 22.187 billion dollars. However, this figure falls short of the market expectation of 22.27 billion dollars.

The company also provided a third-quarter outlook for AI semiconductor revenue at 16 billion dollars, slightly below the market consensus of 16.36 billion dollars. Its infrastructure segment revenue was 7.18 billion dollars, also below the market forecast of 7.32 billion dollars.

Broadcom shares are plunging by 15.23% from the previous session following the earnings announcement. Cybersecurity stock CrowdStrike is also down more than 10% after issuing a weak second-quarter revenue outlook. Micron Technology and Marvell Technology are down over 6% and 5%, respectively.

Although tensions have escalated between the United States and Iran, attention is being paid to the fact that ceasefire negotiations are underway. Iran attacked Kuwait International Airport the previous day, and a day earlier, the U.S. Central Command shot down several Iranian ballistic missiles and drones and carried out airstrikes on Qeshm Island in the Persian Gulf.

Keith Lerner, Chief Investment Officer (CIO) and Chief Market Strategist at Truist Wealth, pointed out that the selling pressure following the recent bull market is a normal phenomenon. He told CNBC, "It seems like it's time for a pause," adding, "The market often takes two steps forward and one step back. Since we've taken three steps forward, it may be necessary to at least step back briefly or move sideways."

This content was produced with the assistance of AI translation services.