Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) are down by about 7% to $1,004 in mid-morning trading on Thursday, June 4, after Broadcom (NASDAQ:AVGO) delivered an AI chip outlook that markets viewed as underwhelming. Broadcom shares are down 14% to $411 and change.
The drop comes despite no Micron-specific news. It’s evidently a sympathy move tied to Broadcom’s post-earnings reaction, which has pulled the entire memory and AI chip complex lower into late morning.
The Broadcom stock slump is a trigger for today’s broad semiconductor reset. The AI capex narrative that powered MU stock’s parabolic run is being repriced in real time.
Broadcom’s AI Guidance Miss Sparks the Selloff
Broadcom beat on the headline numbers. The company’s Q2 FY2026 non-GAAP EPS came in at $2.44 vs. $2.40 expected, and revenue hit $22.19 billion vs. $22.12 billion expected. Also, Broadcom’s AI semiconductor revenue surged 143% year over year to $10.8 billion.
However, the forward guidance is where sentiment cracked. Broadcom projected third-quarter AI chip sales of $16 billion, below analysts’ estimates of $17.2 billion, and notably did not raise its 2026 AI semiconductor sales forecast.
Broadcom CEO Hock Tan stated, “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” The figure was strong, yet it sat below whisper expectations for hyperscaler AI orders, and that’s the gap that traders are punishing.
Contagion Spreads Across Memory and AI Names
Micron stock is collateral damage today. As a key supplier of high-bandwidth memory (HBM) for AI accelerators, MU stock trades in lockstep with AI capex sentiment, and Broadcom’s softer-than-hoped guide reset the bar for the entire complex.
The selloff extended across the memory group. SanDisk (NASDAQ:SNDK) stock is off 3%, and Western Digital (NASDAQ:WDC) stock is down 2%. CrowdStrike (NASDAQ:CRWD) stock is also lower after its own earnings, reinforcing a risk-off tone toward extended AI winners.
Micron stock’s pullback follows a parabolic run. The stock is up 865% over the past year over the past year despite today’s sell-off. Stretched names tend to get hit the hardest when sentiment turns, and that’s apparently what’s playing out.
The Demand Story Versus the Tape
Micron’s fundamentals haven’t changed today. The company’s most recent quarter (Q1 FY2026) showed revenue of $13.64 billion, up 57% year over year, with Cloud Memory revenue nearly doubling to $5.28 billion at 66% gross margins. Micron Technology CEO Sanjay Mehrotra has pointed to HBM order books stretching into 2027.
At the same time, Polymarket’s same-day market is pricing a 98% probability that MU closes lower today, while the modal week-end outcome sits near $1,020 at a 42% probability. The crowd reads this as overdone rather than broken, though it expects stabilization, not a sharp snap back.
The honest framing is straightforward. The AI memory demand story remains intact, but parabolic charts carry sharp pullback risk whenever the macro AI capex narrative wobbles, and today is a textbook example.
What to Watch Next
Investors can watch for whether sector sentiment stabilizes into the close, particularly around hyperscaler capex commentary from Broadcom’s competitors and customers. The $890 area has emerged as a key support zone in the prediction markets, with a 97% probability of holding by week-end.
Careful investors may want to size their positions with this kind of two-way volatility in mind. Micron’s next earnings update and any incremental HBM commentary from hyperscalers could reset the narrative quickly, in either direction.
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