Broadcom's AI Chip Guidance Miss Triggers 7.7% Drop in Micron, 4% Decline in SanDisk on Thursday

According to Broadcom's Wednesday evening earnings report, the chipmaker projected $16 billion in AI chip revenue for the third quarter, falling short of analyst estimates of $17.2 billion, triggering a selloff in memory stocks on Thursday. Micron Technology shares plummeted 7.7%, their worst single day in over a month, while SanDisk and Western Digital dropped 4% and 3%, respectively. The iShares Semiconductor ETF (SOXX) declined 2%.

Retail investors on Stocktwits viewed the dip as a buying opportunity, with sentiment for Micron shifting to bullish from neutral. One trader posted: "I am selling every other stock I have to buy this dip. What a blessing," while others characterized the pullback as temporary despite bearish short-term sentiment in SanDisk and Western Digital.