Broadcom Inc. Chief Executive Officer Hock Tan, who created the chip behemoth using a series of acquisitions, said the company is now less focused on dealmaking because AI offers stronger growth potential.

Today, June 4, 2026, a historic post-earnings sell-off is forcing investors to rethink AI growth assumptions across chips.

Broadcom projected $16 billion in AI chip revenue in the third quarter, much below estimates of $17.2 billion, and kept its fiscal year 2027 outlook unchanged at $100 billion. The

Broadcom Inc. shares plunged by the most in more than 16 months after the company’s forecast for sales of its artificial intelligence chips disappointed investors.

The tech giant's recent sell-off is a buying opportunity.

Broadcom held the line on its AI guidance for its upcoming third quarter on Wednesday night, but the stock still fell 15% on Thursday morning. That counterintuitive outcome sits at the center of KeyBanc Capital Markets analyst John Vinh’s reaction on CNBC’s Squawk Box,

Elsewhere, Intel slid more than 4% and Advanced Micro Devices shed over 7% as investors rotated out of high-flying AI-linked names. The market's reaction appeared less about Broadcom's actual performance and more about the gap between expectations and reality.

Sometimes, a market shows its character by what it doesn't do.

Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) are down by about 7% to $1,004 in mid-morning trading on Thursday, June 4, after Broadcom (NASDAQ:AVGO) delivered an AI chip outlook that markets viewed as underwhelming.