AI Outlook Miss Triggers Memory-Chip Selloff, Dragging Micron Lower

Broadcom's AI-chip revenue guidance for Q3 came in below expectations (about $16B vs $17.2B anticipated), sparking a broad selloff in memory and AI-chip names. Micron dropped about 7% in sympathy as AI-capex sentiment re-prices, with other memory players like SanDisk and Western Digital also lower. Despite Micron's strong latest-quarter results (revenue up 57% year over year and HBM orders extending into 2027), today’s moves appear sentiment-driven rather than fundamentals, and investors will watch hyperscaler demand and Micron's next earnings for any re-rating signals.