Nvidia, Broadcom and Microsoft Trade Up to 28% Below Highs as AI Revenue Accelerates
Updated
Updated · 24/7 Wall St. · Jun 14
Nvidia, Broadcom and Microsoft Trade Up to 28% Below Highs as AI Revenue Accelerates
3 articles · Updated · 24/7 Wall St. · Jun 14
Summary
Nvidia, Broadcom and Microsoft entered mid-June well below 52-week highs despite still-strong AI growth, with Nvidia down 26%, Broadcom about 25% and Microsoft roughly 28% from their peaks.
Revenue trends remain robust: Nvidia posted $81.61 billion in Q1 sales, Broadcom $22.19 billion in Q2, and Microsoft $82.89 billion in Q3, with each highlighting rapid AI-related growth.
The pullbacks reflect different pressures — Broadcom sold off after guidance missed lofty expectations, Microsoft faces concern over surging capex, and Nvidia is exposed to China export curbs and higher volatility.
Even so, management outlooks stayed aggressive, including Nvidia's $91 billion Q2 revenue guide, Broadcom's $16 billion Q3 AI semiconductor target and Microsoft's $37 billion AI annualized revenue run rate.
The setup suggests investors are weighing near-term valuation and spending risks against a still-expanding AI infrastructure cycle heading into the second half of 2026.
With customers yet to profit from AI, is this chip stock dip a historic buying opportunity or a looming value trap?
The AI boom is fueled by trillions in debt. What happens to tech's giants when this massive infrastructure gamble doesn't pay off?
As companies deploy autonomous AI agents, are we overlooking the catastrophic security risks that could follow?
Navigating the 2026 AI Stock Pullback: Valuations, Macroeconomic Risks, and the Road to $1.8 Trillion
Overview
In June 2026, the technology sector saw a sharp pullback as major AI-driven stocks like Nvidia, Broadcom, and Microsoft dropped from recent highs, with the ProShares Ultra Technology index reflecting these losses. This downturn was driven by sky-high investor expectations and growing macroeconomic concerns, even though the AI sector itself continued to perform strongly. As a result, investors became more cautious, shifting away from established AI stocks and questioning whether current high valuations could be sustained. The immediate market reaction showed that strong company performance alone was no longer enough to guarantee stock gains amid changing sentiment and economic uncertainty.