A split-personality session. The Dow surged 875 points to a fresh all-time high, powered by defensives and value rotation as oil retreated on Middle East ceasefire progress. Meanwhile, the Nasdaq slipped 0.9% as AVGO's 12.6% plunge dragged semis lower and the S&P 500 eked out a recovery to close down just 0.16%, overcoming the tech drag. VIX edged up to 16.06. Bitcoin slid below $63,000, its lowest since February.
Broadcom beat on every metric and guided Q3 AI semi revenue to $16B (up over 200% YoY). Full-year AI semi now expected at $56B. But management reiterated -- rather than raised -- the FY27 target of $100B+ in AI semi revenue. That was enough for the market to punish it. Baystreet called results "disappointing"; William Blair said investors were looking for a new, higher target. The selloff dragged other semis lower (MRVL, AMD, ARM, INTC all red).
Intraday low: $403.01 -- stock found a floor and recovered ~$16 off the bottom.
Best Mag 7 performer today. Alphabet's $80B equity offering (first $40B tranche) was "well over-subscribed" per Sundar Pichai, allowing them to sell ~$5B more than planned. The capital goes toward AI data centers; 2026 capex now guided at $180-190B. Instead of punishing dilution, the market read this as a confidence signal. Needham reiterated Buy at $450 on June 3.
Extended hours: $371.74 (-0.12%), essentially flat.
Mild weakness, likely semi/AI contagion from the AVGO washout. Still above its 50-day SMA ($105). Bearish sentiment per CoinCodex. High beta name (2.3) -- expect continued volatility if the AI trade stays under pressure near-term.
The thesis: every number was strong, the selloff is entirely about expectations management (not raising FY27 from $100B). AI bookings of $30B against $10.8B shipped shows demand is deepening, not peaking. Six core customers committed (Google, Meta, OpenAI, Anthropic, plus two unnamed starting shipments in 2026). FCF on track to exceed $50B annually.
The numbers: 42 analysts, Strong Buy consensus, mean PT $484.54 (+16% from here), bull case $630. Stock is now 15% below its $495 all-time high. Even with today's drop, AVGO is still up ~20% YTD.
What to consider: The intraday floor at $403 is the first support to watch. If it holds on follow-through selling tomorrow, that's the line. A break below it opens risk to the mid-$370s. If you believe the AI infra buildout is real -- and AVGO's bookings say it is -- this selloff looks like a gift. Size appropriately; semis are volatile and follow-through selling after a gap down is common.
Apple sits at $311, just below its $316 all-time high. BofA raised their price target to $380 (from $330) citing the thesis that the company owning the device + platform where AI agents run becomes more valuable than the model itself. JPMorgan expects a redesigned Siri and a standalone AI chatbot app competing with ChatGPT and Claude.
What to consider: If announcements land well, a breakout above $316 to new highs is the play. But WWDC events have historically been "buy the rumor, sell the news" -- Apple has delayed enhanced Siri multiple times since 2024. No position ahead of the event is also a valid call. If you want exposure, a small position with a tight stop below $305 caps downside.
Alphabet rallied 3.7% on a day where a massive equity offering should theoretically dilute. Institutions over-subscribed the first $40B tranche. $180-190B in 2026 AI capex is a massive number. At $372, GOOGL is still 9% below its $408 ATH. Needham has a $450 target. If the AI capex cycle enters a "mature and capital-intensive phase" as BCA Research wrote, the company with the largest cloud infra footprint stands to benefit.
What to consider: Watch for continuation above $373 (today's high). A pullback to $358 (today's low) would be an interesting re-entry area if the broader market cooperates.