US Stock Futures Slide as Broadcom Earnings Miss Sparks Chip Stock Selloff

U.S. stock index futures moved lower on Wednesday evening as investors reacted to Broadcom’s mixed quarterly earnings report and growing geopolitical concerns surrounding the ongoing U.S.-Iran conflict. Weak sentiment in the technology sector, particularly among semiconductor stocks, weighed heavily on market futures.

S&P 500 Futures declined 0.5% to 30,410 points, while Nasdaq 100 Futures dropped 0.7% to 30,406.5 points. Dow Jones Futures remained relatively stable at 50,791 points. The pullback followed a negative trading session on Wall Street, where major indexes retreated from record highs amid increased profit-taking and geopolitical uncertainty.

Broadcom (NASDAQ: AVGO) was at the center of investor attention after reporting second-quarter revenue of $22.19 billion, slightly below analyst expectations of $22.27 billion. The company also maintained its artificial intelligence chip revenue forecast at $16 billion for the current quarter, falling short of market projections of $16.36 billion. Despite delivering better-than-expected earnings per share, Broadcom shares plunged 12% in after-hours trading.

The disappointing revenue outlook triggered broader weakness across semiconductor stocks. Shares of Intel, Micron Technology, and Advanced Micro Devices (AMD) fell between 1.5% and 2.2% in extended trading. Nvidia remained largely unchanged after declining 3.6% during the regular session. Analysts noted that many chip stocks have posted substantial gains throughout the year, making the sector vulnerable to profit-taking.

Broadcom continues to benefit from strong AI-driven demand, but investors remain cautious about increasing competition from rivals such as Marvell Technology and ongoing supply chain constraints linked to limited manufacturing capacity at major foundries, including TSMC and Samsung Electronics.

Meanwhile, Wall Street sentiment was further pressured by escalating tensions between the United States and Iran. Reports of continued military exchanges and uncertainty surrounding ceasefire negotiations fueled concerns among investors. As a result, the S&P 500 fell 0.7%, the Nasdaq Composite lost 0.9%, and the Dow Jones Industrial Average dropped 1.2% during Wednesday’s session.

Rising geopolitical risks also pushed oil prices higher, adding another layer of uncertainty for global financial markets. Investors will continue monitoring developments in the Middle East, upcoming economic data, and corporate earnings for clues about the market’s next direction.