The Philadelphia Semiconductor Index ($SOX) hit an all-time high of 13,998.14 on June 3, then quickly dropped 9.58% in one session, its sharpest fall in a while. The selloff followed Broadcom's (AVGO) Q2 earnings report. Even though revenue jumped 48% year-over-year (YoY) to $22.2 billion, investors were not impressed.
The market wanted stronger AI guidance and more big customer wins. Because Broadcom is seen as a key signal for the chip sector, its cautious tone dragged the rest of the space lower, including Nvidia (NVDA), Advanced Micro Devices (AMD), Micron Technology (MU), Arm Holdings (ARM), and Marvell Technology (MRVL). Even after the drop, the SOX is still up 78% this year, though some had already warned that chip stocks were getting stretched.
