Global Chip Stocks Plunge as Broadcom (AVGO) Guidance Miss, U.S. Jobs Data Spark Selloff

Global semiconductor stocks tumbled on June 6, 2026, after Broadcom’s disappointing guidance and an unexpectedly strong U.S. employment report triggered one of the year’s broadest chip selloffs. The downturn spread from Asia to Europe, driven by a dual shock that erased AI spending optimism and dimmed interest-rate cut hopes. The catalyst: Broadcom’s guidance reset expectations for hyperscaler AI chip investment, pulling the sector’s key growth driver. Meanwhile, the U.S. added 172,000 payrolls, well above forecasts, eliminating near-term rate-cut prospects and introducing rate-hike risk by year-end, according to CME FedWatch. Semiconductor valuations, built on aggressive multi-year earnings assumptions, are acutely sensitive to such discount-rate moves. South Korea’s Kospi index fell 5.5%, with Samsung down 6.4% and SK Hynix nearly 10%. European stocks followed: ASML lost 3.8% and Infineon dropped more than 6%. U.S. analog chipmakers—including Texas Instruments and Analog Devices—also slid, as the selloff highlighted vulnerabilities in a sector still navigating a two-year inventory correction. Impinj shares, among the most volatile, fell further, while Western Digital and Semtech also declined.