Broadcom’s Stock Surges on Strong Earnings and AI Growth
Broadcom’s stock experienced a significant surge, jumping 10% to $198 per share, following its robust earnings report. The company reported first-quarter revenue of $14.92 billion, marking a 25% increase from the previous year, and earnings per share rising to $1.14 from $0.28. Notably, revenue in Broadcom’s AI segment rose 77% in the quarter, providing optimism for the AI hardware market.
Marvell Technology’s Shares Plummet Amid Tepid Revenue Forecast
In contrast, Marvell Technology’s shares tumbled 16% after issuing a revenue forecast that fell short of investor expectations, reigniting concerns about spending on AI infrastructure. The company’s current-quarter revenue forecast was only $10 million above estimates, failing to alleviate fears about the need for substantial investments in AI infrastructure. This led to a broader sell-off in the semiconductor sector, with shares of other chipmakers, including Broadcom and Nvidia, also experiencing declines.
Nvidia’s Earnings Spark Selloff in AI and Semiconductor Stocks
Nvidia’s recent earnings report, despite surpassing Wall Street expectations, led to a significant selloff in AI and semiconductor stocks. Nvidia’s shares fell more than 7%, contributing to a broader market downturn, with the PHLX Semiconductor Index dropping over 5%. Investors expressed concerns about excessive AI spending and broader economic conditions, leading to a selloff in AI-focused companies.
Market Outlook Amid Mixed Signals
The semiconductor sector has faced challenges due to tariffs imposed by President Donald Trump on countries including China, contributing to a 5% decline in the Philadelphia Semiconductor Index in 2025. While companies like Broadcom have shown resilience with strong earnings and growth in AI segments, others like Marvell Technology have struggled with tepid forecasts, highlighting the industry’s mixed outlook.
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