The semiconductor sector just had one of those days where everything that could go wrong did. Micron Technology and Intel led a broad retreat in chip stocks after Broadcom’s fiscal Q2 earnings landed with a thud, missing the sky-high expectations Wall Street had built around AI chip revenues.

The damage was swift and widespread. The iShares Semiconductor ETF (SOXX) fell roughly 10% in a single session, while the leveraged Direxion 3x Bullish Semiconductor ETF (SOXL) cratered by about 30%.

What actually happened

Broadcom reported its fiscal Q2 results on June 4, 2026, and the numbers told a story investors didn’t want to hear. The company’s AI chip forecasts fell short of expectations, and more importantly, guidance didn’t raise full-year projections.

Micron’s share price dropped over 7%, with some reports citing intraday declines as steep as 10-13%. Intel fared no better, shedding several percentage points with some sessions showing losses near 11%. The PHLX Semiconductor Index and related ETFs suffered severe single-day losses as the selling pressure cascaded through the entire chip complex.

Earlier in 2026, Micron posted record Q1 revenue of $13.64 billion, powered by surging demand for AI-related memory chips. Intel had also been riding a wave of renewed investor confidence.

The AI valuation problem

Analysts noted significant pressure on semiconductor valuations in the wake of the selloff. The prior AI-driven performance of companies like Micron and Intel had created expectations that every quarter would deliver blowout numbers.

What this means for investors

For crypto investors watching from the sidelines, there’s an interesting data point here: no cryptocurrency or digital assets were meaningfully impacted by the semiconductor correction, suggesting a degree of decoupling between these markets.