Chip complex falls after poor Broadcom earnings, weak buildout estimates

Watch on YouTube ↗  |  June 09, 2026 at 18:15  |  1:57  |  CNBC
Speakers
Kristina Partsinevelos — Markets Reporter, CNBC

Summary

Semiconductor and AI hardware stocks sold off sharply, led by optical networking names. The sell-off was attributed to systemic fund unwinding after a risk appetite drop, shaken confidence after Broadcom's post-earnings decline, and a lack of near-term catalysts. Optical names Lumentum and Coherent fell on concerns that Wall Street buildout estimates may be too aggressive. Micron drew a buy call from UBS, while Nvidia held up relatively better on news of Apple's AI GPU usage.

  • AI hardware led S&P 500 and Nasdaq lower as selling continued from Friday.
  • Risk appetite dropped over 25% in three sessions, historically leading to S&P 500 underperformance.
  • Broadcom's post-earnings decline rattled AI trade confidence; no obvious near-term catalysts.
  • Optical networking stocks Lumentum and Coherent plunged amid doubts about buildout timelines.
  • Marvell, Qualcomm, Supermicro, Dell, and Micron also fell; Micron was called a buy by UBS.
  • Nvidia edged lower even as Apple confirmed using its GPUs for AI.
Ideas
Kristina Partsinevelos Markets Reporter, CNBC 0:37
S&P 500 may drop after risk appetite plunge
After a >25% drop in risk appetite over three sessions, the S&P 500 has historically averaged a one-month loss more than three times its average gain, suggesting further short-term downside pressure.
SPY MED
Kristina Partsinevelos Markets Reporter, CNBC 0:46
AI hardware lacks near-term catalyst
Broadcom's post-earnings sell-off despite solid results rattled confidence in the AI trade, and with chip earnings and Computex concluded, there is no obvious catalyst to attract buyers back into AI hardware stocks.
AI Hardware MED
Kristina Partsinevelos Markets Reporter, CNBC 1:47
Optical networking buildout estimates too aggressive
Optical networking names Lumentum and Coherent are falling sharply, potentially because SemiAnalysis is questioning whether the buildout timeline for next-generation optical networking technology is too aggressive relative to Wall Street estimates.
COHR LITE LOW
Up Next
3:38
Anthropic interests me, says Dan Niles
CNBC · Jun 09
10:49
IBM CEO Krishna on Quantum Advantage, Profit Strategy
Bloomberg Markets · Jun 09
11:01
Trading the market downturn: The committee's next move
CNBC · Jun 09
10:49
Novo Nordisk CEO: We are a cardiometabolic powerhouse
CNBC · Jun 09
39:46
Squawk Pod: Knicks-onomics, OpenAI’s S-1, & Apple’s Siri AI - 06/09/26 | Audio Only
CNBC · Jun 09

This CNBC video, published June 09, 2026, features Kristina Partsinevelos discussing SPY, AI Hardware, COHR, LITE. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kristina Partsinevelos  · Tickers: SPY, AI Hardware, COHR, LITE