The Chip Selloff Just Wiped Out Two Weeks of Gains in One Friday
Broadcom beat earnings and still got crushed. The Nasdaq suffered its worst day since April 2025. Here’s what happened—and what’s coming next.
Welcome to Staten News — where Wall Street reminds us that sometimes beating expectations isn’t enough.
Last week ended with a full-scale tech meltdown, the kind that starts with one earnings report and snowballs into a sector-wide panic before lunch.
The Nasdaq plunged 4.18% on Friday alone, marking its worst single-day decline since the tariff chaos of April 2025. The S&P 500 fell 2.64% to 7,383.74, while the Dow dropped 695 points to 50,866.78.
For the week:
S&P 500: -2.1%
Nasdaq: -4.7%
Dow Jones: -1.8%
The AI-fueled rally that pushed the S&P Tech Sector up nearly 45% over the last ten weeks finally hit resistance.
And the catalyst was a company that technically did everything right.
😬 Biggest Loser: Broadcom (AVGO)
Sometimes Wall Street grades on a curve.
Broadcom reported what most CEOs would consider a dream quarter:
Revenue: $22.19B vs. $22.13B expected
EPS: $2.44 vs. $2.39 expected
AI Semiconductor Revenue: $10.8B (+143% YoY)
Q3 Revenue Guidance: $29.4B vs. $28.6B expected
So naturally, the stock fell 14%.
The issue wasn’t the numbers.
The issue was expectations.
AVGO entered earnings up nearly 88% over the previous year and trading at all-time highs. Institutional investors weren’t looking for a beat—they were looking for a moonshot.
Instead, management delivered guidance that was strong but not spectacular enough to justify increasingly aggressive AI growth assumptions.
The result?
A rapid repricing across the entire semiconductor space.
Collateral Damage:
Nvidia: -5.93%
Cisco: -6.35%
IBM: -5.54%
AMD: -4.0%
Intel: -3.0%
None of those companies reported bad news.
They were simply standing too close to the explosion.
💥 Biggest Gainer: Marvell (MRVL)
While Broadcom spent Friday falling out of a window, Marvell spent most of the week celebrating.
Shares surged 33% after Jensen Huang’s endorsement at Computex, making it the week’s biggest winner.
Even after some profit-taking later in the week, MRVL finished at $277.15—well above its pre-Computex level near $220.
When Jensen speaks, the semiconductor sector tends to listen.
And sometimes it buys first and asks questions later.
📊 Why the Selloff Got So Violent
Broadcom may have lit the match, but macro data poured gasoline on the fire.
Heading into the week, BTIG highlighted a remarkable statistic:
The S&P Technology Sector had rallied 44.6% over ten weeks—its strongest 10-week gain ever recorded.
At the same time:
RSI climbed to 82
Tech traded 28% above its 200-day moving average
Historically, those conditions rarely end with calm consolidation.
Then Friday’s jobs report arrived.
May payrolls came in at 172,000—roughly double expectations.
That pushed Treasury yields to 4.54% and reignited fears that the Fed may need to stay aggressive.
Strong economy.
Higher yields.
Higher discount rates.
That’s a dangerous combination for stocks priced for perfection.
🔮 This Week’s Biggest Market Movers
Wednesday: CPI Report
The most important number of the week arrives Wednesday morning.
Investors will be watching inflation data for clues ahead of the Fed’s June 16–17 meeting.
Current market pricing implies roughly a 57% probability of another rate hike.
What Happens If...
Hot CPI?
Treasury yields likely move higher
Rate hike odds increase
Growth stocks face more pressure
Cool CPI?
Relief rally potential
Tech rebounds
Friday’s losses partially reverse
One report could determine the market’s direction for the rest of June.
Thursday: ECB Decision
The European Central Bank is expected to raise rates by 25 basis points to 2.25%.
That would end a seven-meeting pause.
The challenge?
Europe’s economy is slowing while inflation remains sticky.
Core CPI recently climbed to a 13-month high, while Eurozone growth forecasts continue to deteriorate.
Central banks hiking into weakening economic conditions is rarely a bullish signal for risk assets.
📈 Predicted Gainer: Oracle (ORCL)
Oracle reports earnings Wednesday after the close.
Wall Street expects approximately $16.4 billion in revenue.
While investors obsess over Nvidia, Oracle has quietly become one of the biggest beneficiaries of the AI infrastructure boom.
Key strengths:
Massive cloud infrastructure expansion
$130 billion in remaining performance obligations
AI partnerships with OpenAI, Meta, and major hyperscalers
The stock is already up 40% year-to-date, but still trades at a valuation discount relative to many AI peers.
A strong quarter and raised guidance could close that gap quickly.
Prediction: Oracle surprises to the upside and becomes this week’s biggest winner.
📉 Predicted Loser: Adobe (ADBE)
Adobe reports Thursday after the close.
The setup isn’t ideal.
AI image and video generation tools continue to pressure Adobe’s traditional premium software model, while revenue growth has slowed for four consecutive quarters.
Investors aren’t worried about last quarter.
They’re worried about the next five.
Adobe still has one of the strongest brands in software, but the market increasingly wants proof that AI will expand the moat rather than shrink it.
Prediction: Conservative guidance sends shares lower.
Final Thoughts
Last week’s selloff wasn’t about Broadcom.
It was about expectations.
When an entire sector rallies nearly 45% in ten weeks, investors stop rewarding good news and start demanding perfection.
This week shifts the focus from earnings to economics.
CPI, the ECB, and two major tech earnings reports will likely determine whether Friday was a healthy reset—or the start of something larger.
Keep your watchlist ready.
Volatility just walked back into the room.
— The Bandicoots 📉📈