What is the relationship between Micron and Broadcom?

Both companies operate in the semiconductor sector, and Micron is a key supplier of memory chips used in AI applications, making it sensitive to changes in AI chip demand.

Were other companies affected by the selloff?

Yes, companies like NVIDIA and AMD also saw notable declines due to fears of slowing AI chip demand.

Micron Stock Slumps as AI Chip Selloff Sparks Sector-Wide Panic After Broadcom Shock

Micron Technology (MU) shares slumped sharply on Thursday, caught in a broad selloff of AI chip stocks after Broadcom (AVGO) reported disappointing quarterly results, raising concerns about slowing demand in the sector.

June 4, 2026

2 min read

Source: GuruFocus.com

Micron Technology (MU) shares fell sharply in trading today, hitting multi-week lows, as a broad selloff swept through AI chip stocks after Broadcom (AVGO) reported quarterly results that disappointed investors.

Potential Causes

The immediate trigger for Micron's decline was the contagion from Broadcom's Q2 2026 earnings miss, which sparked fears of slowing demand for AI chips. As a key player in the memory chip market used for AI applications, Micron was particularly vulnerable to the sector-wide pessimism.

Context

The drop comes after a strong run for Micron shares, which had gained over 40% year-to-date on robust demand for high-bandwidth memory. However, concerns about market saturation or a slowdown in data center spending could push the stock into a deeper correction.

Similar Moves in the Sector

The selloff was not limited to Micron and Broadcom; other major chip stocks like NVIDIA (NVDA) and AMD (AMD) also recorded notable declines. Analysts point to growing uncertainty about the sustainability of AI chip demand growth.

Frequently Asked Questions

Micron stock fell due to a broad selloff in AI chip stocks after Broadcom reported disappointing quarterly results, raising demand slowdown fears.

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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.