Broadcom drags Nasdaq lower as Dow and S&P 500 climb to new highs

Broadcom posted the kind of quarter most companies would frame and hang on the wall. Record revenue, a 143% explosion in AI chip sales, beats on both the top and bottom line. The market’s response? A double-digit selloff that dragged the entire Nasdaq lower while the Dow Jones Industrial Average quietly notched a record high. On June 4, Broadcom shares cratered between 12.6% and 15%, erasing roughly $286 billion in market value at one point. The Nasdaq Composite closed slightly in the red, with the Nasdaq 100 dropping around 0.7%. Meanwhile, the Dow climbed 1.73% to a fresh all-time high, and the S&P 500 rose 0.41% to close near 7,584. Record numbers, record disappointment Broadcom’s fiscal Q2 2026 results, reported on June 3, were objectively stellar. Total revenue hit a record $22.2 billion, up 48% year-over-year. AI-related chip revenue accounted for $10.8 billion of that total, a 143% jump from the same period a year ago. The company beat Wall Street’s estimates for both sales and adjusted earnings per share. Analysts pointed to Broadcom’s forward-looking commentary on AI demand as the culprit. The guidance, while not catastrophic, apparently failed to match the sky-high ex...