Broadcom Shares Drop 13% on First Revenue Miss Since 2024

Traders dumped shares in semiconductor companies Thursday after Broadcom reported weaker than expected revenue, sending futures on the S&P 500 down 0.4 percent and Nasdaq 100 futures lower by 1.1 percent. Dow futures edged higher by 226 points, but the broader mood reflected growing unease over both corporate results and renewed military confrontation between the United States and Iran.

Broadcom shares plunged 13 percent in premarket trading after the company missed Wall Street estimates for its fiscal second quarter. CrowdStrike also fell 10 percent after issuing soft guidance for the coming quarter. Other chip names followed the decline, with Arm Holdings, Micron Technology and Marvell Technology each down around 6 percent. The VanEck Semiconductor ETF lost more than 3 percent before the opening bell.

The moves came one day after a sharp selloff on Wall Street that coincided with an escalation in the Middle East. Iran struck Kuwait International Airport early Wednesday, according to reports, while U.S. Central Command said it had intercepted Iranian ballistic missiles and drones before carrying out strikes on Qeshm Island in the Persian Gulf. The U.S. actions were described as self-defense measures taken in response to attempted attacks by Tehran.

Those developments interrupted a nine-week winning streak for the S&P 500 and raised fresh questions about how long the market can ignore geopolitical risks. Keith Lerner, chief investment officer at Truist Wealth, told CNBC that a pause after such a long advance was understandable and that fundamentals remained solid. Yet the speed of the chip-stock reversal showed how quickly sentiment can shift when earnings disappoint and regional conflicts intensify at the same time.

The semiconductor sector had powered much of the recent rally, benefiting from enthusiasm over artificial intelligence spending. Thursday’s declines therefore carried extra weight. Investors who had grown accustomed to steady gains now confronted the possibility that both corporate execution and overseas stability could prove more fragile than recent price action suggested.

Defense contractors and energy companies tied to the region saw more resilient trading, underscoring how certain industries can gain when tensions rise. At the same time, broader equity futures reflected concern that sustained conflict could disrupt supply chains and raise input costs for technology manufacturers already navigating weak guidance from key players.

Market participants will watch whether the S&P 500 can hold above recent support levels or whether the combination of lackluster tech results and Middle East volatility produces a deeper pullback. The episode serves as a reminder that the same factors driving rallies—strong corporate spending and relative calm—can quickly reverse when either earnings or foreign policy falter.