State Street SPDR S&P Semiconductor ETF is trading 5.6% down today as investors unwind AI-chip trades following Broadcom’s disappointing earnings guidance, which triggered broad profit-taking across the semiconductor sector.
- Broadcom's earnings reaction and guidance failed to meet high market expectations, sparking a sharp reversal in growth-oriented tech stocks.
- Stretched valuations following a massive year-to-date rally have left chip names vulnerable to a rotation into value and cyclical sectors.
- The broader Nasdaq is under pressure as the information technology sector faces outsized selling amid shifting market sentiment.