The artificial intelligence rally that has powered technology stocks higher for months may be running out of steam, with major names across the sector falling sharply.
Broadcom (NASDAQ: AVGO) delivered revenue guidance that fell short of investor expectations, triggering a broad selloff across AI-linked stocks on Thursday.
Broadcom shares dropped 13.44% as markets digested the underwhelming outlook, raising questions about the pace at which AI infrastructure spending will continue to grow.
Micron Technology (NASDAQ: MU) also fell sharply, declining 6.26% as investors reassessed the near-term demand picture for memory chips tied to AI workloads.
Ciena (NYSE: CIEN) was among the hardest hit, tumbling 19.29% in a move that reflected deep concern about growth trajectories across the broader technology supply chain.
Marvell Technology (NASDAQ: MRVL) bucked the broader trend, posting a gain of 1.89% and standing out as one of the few AI-adjacent names to hold its ground during the session.
The Nasdaq Composite slipped 0.24%, reflecting the outsized influence that large-cap technology stocks continue to have on overall index performance.
Broadcom’s guidance has become a closely watched bellwether for the AI sector, given the company’s significant exposure to custom chip demand from major cloud and hyperscaler customers.
Investors have grown increasingly sensitive to any signals that AI capital expenditure cycles may be softening or taking longer to translate into measurable revenue for semiconductor suppliers.
Thursday’s session underscored how quickly sentiment can shift when a single high-profile earnings report challenges the assumptions underpinning one of the market’s most crowded and consensus-driven trades.
The divergence between Marvell’s gain and the steep losses elsewhere suggests that investors are beginning to make more selective judgments about which companies are best positioned within the AI hardware ecosystem.
With valuations across the AI semiconductor space still elevated by historical standards, any sign of demand hesitation is likely to continue drawing an outsized market reaction in the months ahead.
