Micron flirts with record market-cap wipeout as Broadcom casts a shadow over chip stocks

MW Micron flirts with record market-cap wipeout as Broadcom casts a shadow over chip stocks

By Hannah Pedone

The semiconductor trade is losing steam following Broadcom's earnings report

Micron's stock was down 6% on Thursday, on pace for its largest one-day loss of market cap ever.

As Broadcom tracks toward the largest one-day loss of market capitalization in its history, Micron Technology is doing the same.

While Broadcom's earnings results struck D.A. Davidson analyst Gil Luria as "impressive," investors took issue with various aspects of the report. That's casting a shadow over the wider chip sector, according to Luria.

Shares of Micron $(MU)$ were down 6% in midday trading Thursday, on pace to subtract $86 billion in market capitalization, according to Dow Jones Market Data. Broadcom $(AVGO)$ itself is on track to erase $291 billion in market cap, which would make for the fourth largest one-day market-value erasure for any U.S. company on record.

The PHLX Semiconductor Index SOX, a proxy for chip stocks, was down 3% on Thursday. Broadcom's stock was down 15%, Advanced Micro Devices' stock $(AMD)$ was down 4% and Intel shares $(INTC)$ were down 2% midday.

Micron's stock has been on a tear recently after notching its first close above $1,000 earlier this week. And analysts have been raising their price targets for the company, saying that the chip maker has a number of catalysts. Nvidia's (NVDA) drop of new personal-computing chips that support higher memory capacity, for instance, could be a boon for Micron.

See also: As Micron's stock blows past $1,000, Wall Street sees more gains in store

Itau BBA analyst Stephano Gabriel recently told MarketWatch that he continues to see confirmation that the bottleneck for memory is "intensifying," which is a good thing for Micron, as it's giving investors more confidence that high memory prices aren't simply a cyclical phenomenon.

He said that more expected long-term agreements at currently elevated memory prices could help the company lock in predictable revenue.

"This helps ease peak-cycle concerns," he said.

Read more: Why Broadcom's stock is falling so hard after earnings

-Hannah Pedone

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June 04, 2026 13:32 ET (17:32 GMT)

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