The AI-chip complex extended its slide into the back half of last week, with the Nasdaq Composite logging a fifth straight losing session Friday, closing down 0.24% at 25,297.62 and falling 4.6% for the week. The risk-off rotation followed hawkish Fed signaling on sticky inflation plus mounting AI-valuation jitters; Nvidia sits around $192.71 with a market cap near $4.72 trillion, up only about 3.65% year-to-date, badly lagging the rest of the group.
Micron's fiscal Q3 results on June 24 beat the high end of guidance on revenue, gross margin and EPS, with management citing HBM capacity sold out through 2026 and HBM4 shipping for Nvidia's Vera Rubin platform. Despite the blowout, the stock tumbled roughly 13% from record highs as the broader memory and AI trade unwound. Raymond James had lifted its target to $1,100 from $530 heading into the print.
Broadcom reported a record fiscal Q2 with $22.2 billion in revenue, including about $10.8 billion from AI semiconductors, but shares fell more than 12% after its 2027 AI revenue target of over $100 billion underwhelmed some analysts. The miss-on-expectations helped trigger the broader semiconductor selloff, dragging equipment names ASML, KLA, Applied Materials and Lam Research down 5% to 6%. Analysts still hold a Buy consensus with an average target roughly 34% above last close.
Oracle slid about 5% as investors kept digesting its June 10 fiscal Q4 report, which paired a record $523 billion backlog with a $70 billion fiscal 2027 capex forecast and a $20 billion equity raise that stoked dilution worries. The backlog is fueled by AI mega-deals including a $300 billion, five-year cloud commitment with OpenAI. The company is also cutting roughly 21,000 jobs as it funds a massive AI data-center buildout.
Microsoft stock has fallen about 21.6% in June, potentially its steepest monthly June decline ever, as investors question whether the company's roughly $190 billion calendar-year capex will generate adequate returns. The slide is part of a broader unease over Big Tech's collective $725 billion 2026 capex plans, up 77% year-over-year. Sell-side models had been catching up to Azure's run rate, but the AI-spending-versus-payoff debate is now front and center.
Against the spending backlash hitting peers, Alphabet has been the relative winner, giving investors visible evidence that AI is driving Search usage, Cloud demand, backlog and margins. The company priced an upsized equity raise of $84.75 billion on June 2 to fund AI compute, targeting $175 to $185 billion in 2026 capex. Where Meta and Microsoft drew skepticism, Alphabet's shares rose sharply after its results.
Chip stocks took an extra hit after a report that OpenAI is weighing delaying its IPO to next year, citing SpaceX's weak post-debut performance and AI-share volatility. Bloomberg reports OpenAI is now eyeing a 2027 listing, with leadership expecting Anthropic to go public first; Anthropic filed its draft S-1 on June 1 after a $65 billion round at a $965 billion valuation, with OpenAI following a week later. Neither is publicly traded yet — flagging as IPO watch items only.
Palantir slid to a fresh 52-week low on June 23 despite a new AI deal with Zeta, after sinking to another low June 22 on a major contract loss. The stock also faces scrutiny over a UK government review of its £330 million NHS contract on privacy grounds. Even so, Q1 revenue surged 85% year-over-year to $1.63 billion, U.S. commercial grew 133%, and analysts hold a Buy consensus with targets clustered near $194 to $200.
Tesla's driverless fleet appears stuck around 40 to 42 authorized vehicles in Texas, dwarfed by Waymo's 577, putting pressure on bull cases that hinge on rapid robotaxi expansion across Austin, Dallas and Houston. The stock ended a recent session up 1% at $379.71, snapping a three-day losing streak. J.P. Morgan upgraded TSLA to Neutral from Underweight on June 5, citing physical-AI and robotics leadership, though the aggregate analyst view remains a Hold with a mean target around $403.
SoundHound AI traded around $6.41 on June 28, up from a $6.21 prior close, well off its 52-week high of $22.17 but holding ground while larger AI names sold off. Q1 revenue rose 52% year-over-year to $44.2 million and the company posted a narrower-than-expected loss of six cents per share. The smaller voice-AI and quantum names like SOUN and IonQ have been more resilient than the mega-cap chip leaders during the rotation.
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