Pre Market Watch List June 4 2026 | Broadcom Sell the News Drags Entire Chip Complex Lower

Good morning. Broadcom reported last night and the numbers were actually good but the stock is getting crushed anyway. That is the story this morning. Let me break down exactly what happened because this is the same pattern we have seen three times now in the last two weeks.

Broadcom beat EPS at $2.44 against a $2.32 estimate. Revenue came in at $22.187 billion which is up 48% year over year. Those are strong numbers. The problem was two things. Revenue missed the consensus estimate of $22.27 billion by about $80 million. And CEO Hock Tan did not raise the full year AI chip sales target of $100 billion. The market had priced in a guidance raise after DELL went up 33% and HPE went up 29% on their AI beats. When Broadcom did not deliver that raise the stock dropped 8% after hours and is now down nearly 15% premarket. This is the exact same pattern as CRM. Beat the number, miss on guidance, stock sells off.

Because AVGO is the AI infrastructure bellwether every chip name is going down with it this morning. Marvell is down 7% after running two days in a row. SMCI is down nearly 7%. MU is down 7%. POET is down 7%. STM is down 5%. SNDK is down 5.5%. The Broadcom print basically reset expectations for the entire AI hardware complex in one session. See the NVDA earnings breakdown for how this AI hardware cycle has been playing out.

The gap up side is very thin today. Only five names gapping up. Two are tiny float micro runners with no catalyst. ServiceNow and Palantir are bouncing after being beaten down earlier this week. The market is telling you to be cautious today. Big down day in semis with no strong catalyst on the buy side is not a day to be aggressive.

The gap up scanner is unusually thin with just five names. Two micro float names with no confirmed catalyst. ServiceNow recovering after the software selloff earlier this week. Palantir recovering alongside NOW. Sidus Space with a small bounce.

The gap down side is the entire semiconductor complex reacting to Broadcom. Eighteen names down between 5% and 15%. Broadcom itself leads the list down nearly 15%. Marvell, SMCI, MU, POET, STM, SNDK, IREN, IONQ, NBIS, NVTS are all down 5 to 7%. BlackBerry is giving back recent gains after hitting a one year high. QTEX and PURR are continuing their corrections from recent runs.

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