Broadcom Plunges 12%, Micron Down 7% — AI Chip Stocks Crash on Semiconductor Sell-Off

Chipmakers Broadcom and Micron Technology sank on Thursday, leading a broad sector sell-off as investors fled the semiconductor space, with Broadcom shares plummeting 12% and Micron dropping over 7%. The sharp declines in chip equities represent a significant disruption to the AI trade, which has been one of the strongest market themes over the past two years as artificial intelligence applications drove unprecedented demand for specialized computing hardware. Broadcom's shares plummeted 12% following an earnings miss that disappointed investors who had expected strong results from the chipmaker's AI-related product lines. The company reported lower-than-anticipated revenue from its data center networking chips, which are critical components for AI infrastructure deployment. This earnings disappointment triggered selling pressure that extended beyond Broadcom to other semiconductor stocks, creating a cascade effect that dragged down the entire chip sector. Micron Technology dropped over 7%, with the memory chip manufacturer facing similar concerns about AI demand sustainability and pricing pressures. Micron's memory products are essential for AI training and inference workloads,…