US stock futures fall broadly, pre-market chip stocks sold off; Micron Technology and ARM drop over 6%

According to data from MSX.COM, 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 was $16 billion, below the analysts' average estimate of $17.2 billion.

Broadcom's disappointing latest earnings guidance triggered a broad sell-off in chip stocks among investors. Micron Technology and ARM dropped over 6%, SanDisk fell over 4%, and Western Digital, AMD, Intel, Seagate Technology, and Qualcomm each declined over 3%, while ASML fell over 2%. U.S. stock futures broadly declined, with the Dow Jones down 1.21%, the S&P 500 down 0.74%, and the Nasdaq Composite down 0.89%.