High-bandwidth memory (HBM) is a high-speed memory type used in AI accelerators and data centers.

Were other companies affected besides Broadcom?

Yes, stocks of companies like Nvidia and AMD also declined on the same report.

What is SK Hynix's role in the AI chip supply chain?

SK Hynix is a key supplier of HBM memory, a critical component in AI accelerators.

Broadcom (AVGO) Falls 2.9% on Report of SK Hynix HBM Expansion Slowdown

Shares of Broadcom (AVGO) fell 2.9% in afternoon trading following a report that South Korea's SK Hynix is slowing its high-bandwidth memory (HBM) expansion, rattling the AI-chip complex.

June 24, 2026

2 min read

Source: StockStory

Key Numbers

stock decline

2.9%

Shares of fabless chip and software maker Broadcom (NASDAQ: AVGO) fell 2.9% in the afternoon session after a report that South Korea's SK Hynix is slowing its high-bandwidth memory (HBM) expansion rattled the AI-chip complex.

Reasons for the Move

The decline came after reports indicated that SK Hynix, a key supplier of HBM chips used in AI applications, is considering scaling back its investment pace for capacity expansion. HBM memory is a critical component in AI accelerators, which are a major revenue driver for Broadcom.

Market Context

This development comes amid heightened volatility in the semiconductor sector, as investors closely monitor any signs of weakening demand for AI chips. Broadcom has benefited significantly from rising demand for networking and storage solutions tailored for data centers.

Similar Moves in the Sector

The negative sentiment extended beyond Broadcom, affecting other semiconductor stocks such as Nvidia and AMD, which also declined on the same report. This reflects the interconnected nature of the AI chip supply chain.

Frequently Asked Questions

The stock fell 2.9% after reports that SK Hynix is slowing its HBM expansion plans, raising concerns about AI chip demand.

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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.