Broadcom’s shares tumbled 15% after the chipmaker posted fiscal second-quarter revenue of $22.19 billion, missing the $22.27 billion consensus compiled by LSEG. The miss extended to infrastructure revenue, which came in at $7.18 billion versus the StreetAccount estimate of $7.32 billion. The company’s first revenue miss since December 2024 underscored ongoing scrutiny of demand within the broader semiconductor space, according to CNBC.
In premarket trading, the weakness spilled over into other AI- and data-center–related chipmakers. Micron Technology slid 6%, Super Micro Computer fell 7%, Intel declined 4%, and Advanced Micro Devices lost about 5%. The broader AI-equipment and semiconductor cohort was pressured as investors reassessed the pace of demand in key customer segments after Broadcom’s report, CNBC noted.
Beyond semis, shares of Five Below dropped nearly 11% after the discount retailer issued a mixed set of signals for the quarter ahead. The company guided second-quarter revenue to $1.18 billion to $1.2 billion, above StreetAccount’s estimate of $1.15 billion, while same-store sales were forecast to rise 7% to 9% versus a consensus of about 4.4%. The divergence between a stronger top-line outlook and the share price move highlighted the market’s sensitivity to margin and growth pathways, CNBC reported.
Petco was down roughly 12% after its current-quarter forecast came in below Wall Street expectations. The pet supplier sees second-quarter adjusted EBITDA in the range of $110 million to $112 million, versus StreetAccount consensus of about $115 million.
Crypto-related names also moved lower in tandem with a retreat in bitcoin, which was down about 5%. Robinhood fell nearly 2%, Coinbase dropped about 1%, and Strategy shed roughly 2.7%, CNBC observed in its premarket coverage.
Clebnary cybersecurity firm CrowdStrike fell about 10% as it laid out a cautious tone for Q2 guidance. The company forecast Q2 revenue around $1.44 billion, just above StreetAccount’s $1.3 billion estimate, and projected earnings per share of $1.16 to $1.17, in line with some consensus expectations. Shares of Palo Alto Networks and Fortinet traded lower in sympathy, according to CNBC.
PVH Corp., the owner of Tommy Hilfiger and Calvin Klein, tumbled about 22% after it reiterated its full-year earnings guidance. The company posted a first-quarter earnings beat, though revenue came roughly in line with expectations, CNBC reported.
In the AI software space, C3.ai advanced about 1.4% after posting its fourth-quarter results. The company reported an adjusted loss of 33 cents per share on revenue of $52 million, versus a StreetAccount consensus looking for a 37-cent loss and $50 million in revenue.
On thehealthcare and services side, UnitedHealth Group rose about 3% after Bank of America upgraded shares to Buy from Neutral, citing improving medical-cost trends and supportive near-term data points that could set up a favorable second-quarter print, CNBC said. Medtronic rose nearly 2% after BTIG upgraded the stock to Buy, noting an attractive top-line setup and a valuation that sits at a discount to peers.
According to CNBC, the day’s moves reflect a mixed bag as investors weigh earnings signals across technology, consumer, and healthcare names. The Broadcom results, in particular, set a tone for the semis group, while other corporate updates offered divergent signals on demand, margins, and profitability trajectories across sectors.
Key takeaways
- Broadcom stock moved about 15% lower after fiscal Q2 revenue of $22.19 billion missed analysts’ expectations of $22.27 billion; infrastructure revenue also came in light at $7.18 billion vs $7.32 billion. Catalyst: first revenue miss since December 2024; implication: raises questions about near-term demand in AI and data-center semiconductor applications.
- Semiconductor names slumped as peers like Micron (-6%), Super Micro Computer (-7%), Intel (-4%), and AMD (-5%) traded lower in premarket action. Catalyst: Broadcom miss underscoring sector headwinds; implication: potential further pressure on AI hardware equities in the near term.
- Five Below and Petco faced mixed signals with Five Below down nearly 11% despite a better-than-expected outlook and Petco down about 12% on a quarterly view below Wall Street expectations. Catalyst: revenue/guidance nuances; implication: investor focus on margins and consumer discretionary demand.
- Crypto-related names fell in sympathy as bitcoin declined ~5%; Robinhood (-2%), Coinbase (-1%), Strategy (-2.7%). Catalyst: crypto price regime impacting exchange and trading platform revenues; implication: downside risk to crypto-adjacent names in risk-off sessions.
- CrowdStrike and PVH offered divergent signals with CrowdStrike (-10%) guiding cautiously for Q2, while PVH dropped ~22% after reaffirming full-year earnings guidance despite a Q1 beat and revenue in line with expectations. Catalyst: mixed guidance and relative valuation; implication: ongoing recalibration of multiples across tech and consumer brands.
- Stock-specific repricings in AI software and healthcare included C3.ai up 1.4% on Q4 results, UnitedHealth up 3% on an upgrade, and Medtronic up about 2% on a BTIG buy rating. Catalyst: company-by-company earnings and advisory signals; implication: selective risk appetite within densely valued sectors.
What drove the move
Broadcom’s revenue miss served as the initial catalyst for a broad catchment in the premarket session, setting a cautious tone for the semiconductor space. The earnings shortfall was complemented by a soft infrastructure-revenue line, amplifying investor scrutiny of demand dynamics across chipmakers that service AI, cloud, and data-center customers. The consequence was a ripple effect into peers that rely on similar end markets, as traders priced in a slower near-term backdrop for AI hardware and related equipment, according to CNBC’s market coverage.
Beyond Broadcom, individual company updates shaped the day’s trajectory. Five Below’s outlook suggested continued consumer spend strength at the discount retailer, yet the stock still fell on the day—illustrating the market’s sensitivity to earnings optics and top-line trajectory. Petco’s guidance underscored a more conservative path for profitability in the current quarter, pressing shares lower despite a modestly constructive longer-term narrative. In the crypto arena, equities tied to digital-asset activity faced headwinds as bitcoin moved lower, underscoring how crypto price action can tilt sentiment for related public names.
On the cybersecurity front, CrowdStrike’s softer-than-expected guidance punctuated concerns around near-term revenue visibility in a space where investors have grown sensitive to incremental monetization progress. Its Q2 revenue target was only modestly above StreetAccount estimates, which did little to soothe investors seeking sustained momentum in a high-multiple growth category. The mixed picture extended to consumer brands, with PVH’s insistence on its full-year earnings path failing to offset the impact of weaker top-line signals in the near term, resulting in a sharp drop in the stock.
In contrast, a handful of healthcare and software names offered more constructive signals. UnitedHealth’s upgrade to Buy and Medtronic’s upgrade to Buy provided a counterpoint to the broader erosion, signaling that some high-quality compounders could still attract demand amid a choppy earnings environment. C3.ai’s quarterly results brought a small degree of relief to AI software investors, as the company posted a quarterly loss narrower than feared and revenue above some expectations, contributing to a modest uptick in its shares.
Market reaction
The session’s reaction underscored a bifurcated market tone: heavy selling pressure in semiconductors and consumer discretionary/crypto-adjacent names, paired with selective upside in healthcare and select software plays. The breadth of the moves—spanning chipmakers, AI software companies, online trading platforms, and brand-name retailers—reflects a broader balancing act as investors price in what earnings signals mean for the remaining portion of the season.
Analysts and strategists highlighted that the breadth of responses hinged on individual company guidance, product cycles, and cost structures. Some noted that higher-quality beneficiaries of secular themes—where long-term pricing power and structural growth persist—could outperform even in a cautious near term. Others stressed that the economics of AI hardware, including margin pressures and deployment cycles, will remain critical in evaluating near-term earnings risk for semis and related ecosystems.
What analysts are saying
BTIG, following Medtronic’s quarterly update, upgraded the stock to Buy, pointing to an attractive top-line setup and a valuation that sits at a discount to peers. In the health-insurance space, Bank of America upgraded UnitedHealth to Buy from Neutral, citing improving medical-cost trends and supportive near-term data that could translate into stronger second-quarter earnings. These moves illustrate ongoing recalibrations where fundamentals and relative valuation intersect with earnings visibility, according to CNBC’s reporting.
Analysts emphasized that the earnings season remains a critical driver of near-term sentiment, with investors parsing guidance for the next several quarters. The mixed signals across chipmakers, consumer retailers, and software names suggest a continued emphasis on profitability, cost discipline, and the durability of demand in AI-driven applications.
Bigger picture
While the day’s moves were driven by company-specific prints, they also reflect a broader investment environment where technology and health-care equities continue to navigate a landscape shaped by inflation trajectories, rate expectations, and evolving geopolitical considerations. The uneven reaction among the group—strong signals in select healthcare and AI software, tempered by softer results in semiconductors and consumer discretionary—highlights how investors are weighing secular growth narratives against near-term volatility.
As earnings season progresses, investors will be watching for signs of demand resilience in AI hardware and data-center ecosystems, as well as margin trajectories across consumer brands. The market’s focus will likely remain on guidance visibility, cost structure, and the durability of pricing power in high-growth segments.
Investors should keep an eye on next-quarter guidance from major technology and healthcare names, upcoming data releases, and any shifts in central-bank commentary that could influence funding costs and capex budgets. Market participants will be looking for clearer signals on whether the current price action represents a repricing of risk or the early stages of a broader recovery in growth-oriented equities, according to CNBC’s market coverage.
Closing note: The stock moves described above are based on premarket and reported data. As the earnings season unfolds, further updates and revisions to guidance could alter the trajectory for individual names and sectors. CNBC contributed reporting from Darla Mercado, Fred Imbert and Lisa Han.
