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Micron, Marvell, and Broadcom lead chipmakers' premarket losses

In morning trading, Broadcom shares plunged about 15% premarket, with Micron and Marvell down roughly 7%–7.5%, as investors rotated away from semiconductors ahead of the market open. The declines follow a period of strength tied to AI memory-chip optimism, but analysts flag a softer near-term outlook due to weaker AI spending and price pressures. The broader tech complex also slipped, with Qualcomm, Intel, and AMD falling before the opening bell and Nasdaq futures trading lower. Analysts quoted in the piece described the rally as having run too far too fast, even as long-term fundamentals in the semiconductor and AI spaces remain intact for many players. A notable nuance is Google's ongoing diversification away from Broadcom as a major customer, potentially affecting Broadcom’s revenue mix. HSBC analysts highlighted concerns around sliding chip prices and a slowdown in AI rollout as part of their cautious stance. While the mood is cautious for the immediate future, some investors see the pullback as a needed correction that could set up a more sustainable pace if AI demand stabilizes. The article underscores ongoing volatility in chip equities amid a shift in market expectations.