On June 5, the iShares Semiconductor ETF (SOXX) fell 5.05% in regular trading, trading at $571.77/share, with trading volume of $3.1 billion. The decline was driven by a broad semiconductor sector selloff triggered by Broadcom's disappointing AI chip revenue guidance.

Broadcom reported Q2 fiscal 2026 revenue of $22.2 billion, up 48% year-over-year, with adjusted EPS of $2.44, both slightly above consensus. However, its Q3 AI chip revenue guidance of $16 billion — while representing over 200% year-over-year growth — fell short of the analyst consensus of $17.2 billion. Full-year AI chip revenue guidance of $56 billion also missed the $57.6 billion estimate. Broadcom shares plunged approximately 12.6%, dragging the Philadelphia Semiconductor Index down over 6% intraday before recovering to close about 2% lower. The selloff spread across the sector, with Micron falling over 7%, while ARM, AMD, and Western Digital each declined more than 3%.

Analysts noted the drop was not due to weak fundamentals but rather excessively elevated expectations, as Broadcom had rallied over 65% from its April low prior to the earnings release. Any guidance below a blowout beat was sufficient to trigger profit-taking across the chip sector.

The fund generally invests at least 80% of its assets in the component securities of its underlying semiconductor index and may invest up to 20% in futures, options, swap contracts, and cash equivalents. The fund is non-diversified.

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