AVGO triggered a sharp market selloff after its revenue outlook disappointed investors. Shares dropped 12%, wiping out roughly $285 billion in market value. The Nasdaq fell 4% as the shockwave spread across chip and memory stocks. South Korean tech heavyweights followed overnight, dragging the KOSPI down more than 5%.
The Broadcom miss hit AI sentiment broadly. NVDA options markets saw heavy hedging activity as traders reassessed AI infrastructure spending expectations. NVIDIA's market cap stands at $5.3 trillion, making it the key bellwether for any recovery in sentiment. A director filed $199 million in share sales this week — near all-time highs.
MSTR rattled crypto markets after its latest share sale unnerved Bitcoin holders. Bitcoin is heading for its biggest weekly loss since November 2022. Short interest on Strategy sits at 12.2% of free float. Bears have been consistent here, and the selloff vindicates their positioning.
CIEN surged after UBS nearly doubled its price target to $508. The networking equipment maker is riding AI-driven fibre demand. LULU moved the other way. Multiple analysts slashed targets after weak guidance. The consensus target dropped to $144 from $171. Short interest on Lululemon stands at 6.2% of free float.
European defence stocks climbed after Ukraine ratified a $105 billion EU loan deal. Separately, Dulux-maker AKZ soared after rejecting a $14.5 billion takeover bid. European stocks were broadly lower, but defence names bucked the trend.
ORCL and ADBE report Wednesday and Thursday respectively. Both are key reads on enterprise AI spending momentum after Broadcom's warning.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
