How much did Broadcom's stock drop?

Broadcom's stock fell 3.2% during Thursday's session.

Were other chip stocks affected?

Yes, Nvidia, AMD, and Micron also fell between 2.2% and 3.1%.

What was the impact of the jobs report on stock markets?

The strong jobs report reinforced expectations of higher-for-longer interest rates, pressuring growth and tech stocks.

Was the sector performing well before this decline?

Yes, the Philadelphia Semiconductor Index had risen 8% over the past month before this pullback.

Broadcom and KLA Stocks Fall as Chip Selloff Intensifies

Shares of Broadcom (AVGO) and KLA Corporation (KLAC) fell on Thursday as a broad selloff in the semiconductor sector intensified, driven by Broadcom's mixed earnings and a stronger-than-expected U.S. jobs report.

June 6, 2026

2 min read

Source: StockStory

Several semiconductor stocks declined in Thursday's morning session, as the overhang from Broadcom's (AVGO) earnings and a stronger-than-expected jobs report combined to trigger one of the broadest chip selloffs of the year.

Potential Causes

Broadcom Earnings: Broadcom reported fiscal Q2 2026 results that came in mixed versus analyst expectations, casting a shadow over the entire sector.
Jobs Report: The U.S. Labor Department reported 272,000 jobs added in May, far exceeding forecasts, reinforcing expectations that interest rates will stay higher for longer.

Context

Broadcom (AVGO) shares fell 3.2% during the session, while KLA Corporation (KLAC) dropped 2.8%. Other major chip stocks such as Nvidia (NVDA) and AMD (AMD) also saw similar declines. The pullback comes after a strong run for the sector in recent weeks, with the Philadelphia Semiconductor Index (SOX) up 8% over the past month.

Similar Moves in the Sector

Losses were not limited to Broadcom and KLA. Nvidia fell 2.5%, AMD dropped 3.1%, and Micron declined 2.2%. Investors appear to be reassessing the sector's elevated valuations in light of a tightening interest rate environment.

Frequently Asked Questions

The stocks fell due to Broadcom's mixed earnings and a stronger-than-expected U.S. jobs report, triggering a broad chip selloff.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.