Micron Technology lost roughly $94 billion in market capitalization on June 4 after Broadcom’s disappointing AI chip guidance sent shockwaves through the entire semiconductor sector. Micron shares fell 7.7% in what became the company’s steepest single-day value decline on record.

The culprit wasn’t anything Micron did. It was Broadcom reporting AI chip revenue guidance of $16 billion for the quarter, about $1.2 billion below what analysts expected. That miss, combined with Broadcom’s refusal to raise its full-year AI revenue target of $100 billion, was enough to trigger a sector-wide panic.

Broadcom’s historic collapse sets the tone

Shares of AVGO plunged as much as 15% during the session before closing down approximately 12.6%. The damage in dollar terms was staggering: an estimated $280 to $286 billion in market capitalization evaporated in a single trading session, making it the largest one-day market-cap loss for any US company in history.

Broadcom’s $16 billion quarterly AI chip guidance fell $1.2 billion short of the $17.2 billion analysts had penciled in. Broadcom also declined to increase its $100 billion full-year AI semiconductor revenue target.

Micron catches the shrapnel

Micron Technology had been riding one of the most impressive rallies in semiconductor history. Shares had climbed to around $1,089 before the sell-off, fueled by insatiable demand for high-bandwidth memory (HBM) and DRAM chips that power AI infrastructure. The stock’s surge had pushed Micron’s market capitalization above $1 trillion.

Micron’s 7.7% decline translated into approximately $94.24 billion in lost market value. AMD, Intel, ARM, and Marvell all saw their stocks decline as investors rushed for the exits. Meanwhile, money flowed into healthcare and financial stocks as investors rotated out of AI-related names.