Broadcom AI Chip Guidance Miss Triggers Market Turmoil, TSMC CEO Says Global Chip Supply Can't Meet AI Demand for Years
June 5. The global chip market experienced a violent shakeup.
Chip giant Broadcom released its fiscal Q2 earnings. While overall revenue and EPS slightly beat expectations, its Q3 AI chip sales guidance of $16 billion fell far short of the $17.2 billion average analyst estimate. On June 4, Broadcom’s stock plummeted 12.59%, triggering a sector-wide selloff in U.S. chip stocks.
On June 5’s open, South Korean chip giant SK Hynix crashed over 9%, Samsung Electronics plunged over 7%, and the KOSPI index dropped over 6% at one point, triggering a circuit breaker.
Broadcom Guidance: A Signal That AI Demand Growth Is Slowing?
Broadcom’s AI chip sales guidance miss was interpreted by the market as a key signal that AI demand growth may be decelerating.
Broadcom is one of the world’s largest custom AI chip designers, supplying AI acceleration chips to tech giants like Google and Meta. Its sales guidance is viewed as an important barometer for measuring the pace of AI infrastructure investment.
| Metric | Actual / Expected |
|---|---|
| Broadcom Q3 AI chip sales guidance | $16 billion |
| Average analyst estimate | $17.2 billion |
| Broadcom stock drop | 12.59% |
| SK Hynix drop | Over 9% |
| Samsung Electronics drop | Over 7% |
| KOSPI index drop | Over 6% (circuit breaker triggered) |
TSMC CEO: Global Chip Supply Can’t Meet AI Demand for Years
In stark contrast to Broadcom’s guidance miss, TSMC CEO C.C. Wei stated the same day that he is confident in the company’s growth for the coming years, and that global chip supply will not be able to meet AI-driven demand for several years to come.
Wei expects TSMC’s full-year revenue growth to still exceed 30%.
What does this mean?
- AI compute demand remains robust, but the chip supply bottleneck has not fundamentally eased
- Broadcom’s guidance miss likely reflects capital expenditure rhythm adjustments by specific customers (such as Google), not a fundamental decline in overall AI demand
- TSMC’s capacity will remain fully loaded in the near term
Market Interpretation: Correction, Not Reversal
Multiple institutions believe this market selloff is a correction of excessively optimistic expectations previously priced into the chip sector, not a fundamental reversal in the AI demand trend.
Guotai Securities published a research note the same day stating that since early 2026, AI agent commercialization has accelerated comprehensively, driving rapid growth in global large model token consumption. Core compute resources at intelligent computing centers remain in tight supply, with mainstream GPU rental prices such as H100 trending upward, and AI infrastructure construction entering an accelerated expansion phase.
Broadcom’s guidance gap is more like a short-term mismatch between a specific vendor’s order rhythm and overall market demand.
Core Conclusion
In the short term, the market needs to digest high expectations for the AI chip sector, and volatility will increase.
In the medium term, AI compute demand remains in an upward trajectory, and the tight chip supply situation has not changed.
In the long term, the chip supply-demand contradiction will continue to push the industry chain toward higher efficiency and lower cost technology paths.
For investors and industry practitioners, this is not a signal of an “AI bubble bursting,” but rather a necessary process for the market to move from euphoric expectations to rational pricing.