Broadcom’s shares plunged after the chipmaker disclosed a Q2 revenue outlook of $29.4bn, falling short of investors’ top estimates and triggering a $250bn market‑value wipe‑out. The decline hit after‑hours trading, where the stock fell as much as 15%.

The drop follows a week‑long rally that lifted Broadcom more than 14% and joined a $5tn surge across the Philadelphia Semiconductor Index. Analysts had priced in a higher AI‑chip revenue trajectory, eyeing the company’s $100bn AI target for 2027.

Quarterly chip earnings hit $15bn, just above the $14.8bn consensus, while total revenue matched the $22.2bn forecast. The gap between expectations and guidance dampened optimism about Broadcom’s ability to sustain its AI‑infrastructure gains.

Investors now question whether the current spending boom can continue, especially after Google’s record $85bn equity sale. Broadcom’s fall signals a sharp recalibration of chip‑sector valuations amid cooling AI‑chip demand.