Broadcom Outlook Sparks AI Demand Concerns Across Tech

Technology stocks faced broad pressure as futures tracking the S&P 500 declined 0.4% and Nasdaq 100 contracts fell 1.0% following Broadcom's ($AVGO) weaker-than-expected earnings report. The chipmaker's shares fell 13% in premarket trading after it held its AI revenue forecast unchanged at $100 billion, short of investor expectations for accelerating demand. European semiconductor stocks followed U.S. chipmakers lower, with the sell-off renewing concerns about the pace of AI infrastructure spending growth. The broader market retreat ended a record rally as investors reassessed near-term growth expectations across the technology sector.

Broadcom's ($AVGO) second-quarter results revealed third-quarter AI chip revenue guidance of $16 billion, slightly below Wall Street expectations despite AI-related revenue more than doubling in the prior quarter. CEO Hock Tan maintained the company's long-range AI chip sales forecast at $100 billion, disappointing investors who had anticipated stronger near-term momentum from hyperscale customers. Nvidia ($NVDA) showcased its expanding AI infrastructure portfolio at Computex in Taiwan, unveiling the RTX Spark AI PC superchip co-developed with Microsoft ($MSFT) and MediaTek, alongside the Vera CPU and rack-scale Vera Rubin platform for agentic AI factories. The company's CEO Jensen Huang met with executives from Samsung and SK Hynix during the event, reinforcing Nvidia's ecosystem leadership as the company pushes beyond GPUs into end-to-end AI infrastructure for both data centers and consumer PCs.

CoreWeave ($CRWV) expanded multi-year AI infrastructure agreements with Anthropic and Meta Platforms ($META), including a contract with $META that extends to around 2032. The AI infrastructure provider also invested in AI startup Tensormesh and is set to join the Russell 3000 Index, increasing visibility with institutional investors. Palantir Technologies ($PLTR) signed a multi-year AI partnership with law firm Kirkland & Ellis to develop artificial intelligence capabilities for enterprise legal operations. $META entered enterprise AI with a new Business Agent tool targeting daily operations for businesses of all sizes across WhatsApp, Instagram, and Messenger platforms.

Dell Technologies ($DELL) shares rose after the computer maker lifted revenue and profit expectations on rising demand for AI-optimized servers used in data centers. The company raised its annual revenue forecast to as much as $169 billion, benefiting as tech giants like Alphabet ($GOOGL) and Amazon aim to spend over $700 billion on AI-related infrastructure this year. $GOOGL announced plans to raise $80 billion in equity offerings to fund an expansion of its AI infrastructure, including a $10 billion investment from Berkshire Hathaway. AI startup Anthropic filed paperwork to go public at a valuation approaching $1 trillion, giving it a lead over rival OpenAI in a race that could shape the future of artificial intelligence.

Uber ($UBER) committed $500 million to robotaxi startup Nuro as part of a three-way agreement with electric vehicle manufacturer Lucid. Nuro counts Nvidia and SoftBank among its existing backers, positioning the company to accelerate autonomous delivery and passenger transportation development. The investment represents a significant bet by $UBER on autonomous technology as the ride-hailing company seeks to diversify its transportation network beyond human drivers.

Google ($GOOGL) faces new UK rules over AI search content as regulators increase scrutiny of the company's search dominance. The move represents the latest regulatory challenge confronting Big Tech companies as governments worldwide grapple with oversight of artificial intelligence capabilities integrated into consumer-facing products. The development adds to mounting regulatory pressure on $GOOGL across multiple jurisdictions regarding antitrust concerns and AI governance frameworks.