US stock futures collectively decline, pre-market chip stocks sold off, Micron Technology and ARM fall over 6%

According to MSX.COM data, chip giant Broadcom fell 14% in pre-market trading. Its overall revenue and earnings per share for the second fiscal quarter slightly exceeded expectations, but its AI chip sales guidance for the next quarter stands at $16 billion, below the average analyst estimate of $17.2 billion.

Broadcom's latest performance guidance disappointed the market, triggering a collective sell-off of chip stocks by investors. Micron Technology and ARM fell over 6%, SanDisk dropped over 4%, and Western Digital, AMD, Intel, Seagate Technology, and Qualcomm declined over 3%, while ASML fell over 2%. US stock futures collectively declined, with the Dow Jones Industrial Average falling 1.21%, the S&P 500 Index dropping 0.74%, and the Nasdaq Composite Index decreasing 0.89%.