Since Broadcom's fiscal Q2 earnings landed Wednesday and triggered a 9-day S&P 500 win streak to collapse Thursday, the damage has spread well beyond one company.

The Numbers That Did the Damage

Broadcom reported fiscal Q2 revenue of $22.19 billion — missing the analyst consensus of $22.27 billion, according to CNBC. That's its first revenue miss since December 2024. Infrastructure revenue came in at $7.18 billion, short of the $7.32 billion StreetAccount estimate.

By Thursday premarket, Broadcom shares had collapsed 15.1%. For context: that's a $300+ billion company losing significant value overnight.

The Contagion Is Real

The fallout didn't stay contained to Broadcom. According to CNBC, Micron Technology fell 7.1% in premarket, Marvell Technologies dropped 7.5%, Intel shed 4.1%, AMD lost 4.3%, and Qualcomm gave up 3.9%. Nasdaq futures were down 1.4% ahead of Thursday's open. S&P 500 futures fell 0.7%.

Crypto got clipped too. Bitcoin dropped roughly 5%, dragging down Robinhood (-2%), Coinbase (-1%), and Strategy (-2.7%), per CNBC.

This wasn't just profit-taking. It was a sector-wide reassessment.

The Real Problem: Google Is Walking Away

The deeper threat isn't one quarter's numbers. It's Google.

Macquarie downgraded Broadcom to neutral from outperform Thursday, citing a specific and damaging trend. According to CNBC's analyst call roundup, Macquarie stated bluntly: "Broadcom was previously the only vendor in Google's supply chain. However, Google is now working with MediaTek and developing in-house capabilities."

John Vinh, equity research analyst at Keybanc Capital Markets, confirmed this on CNBC's Squawk Box Thursday: Broadcom has suffered share loss within its largest customer, Google, which has started diversifying toward other chip suppliers.

Broadcom's entire AI chip growth story was built significantly on being Google's exclusive custom AI chip designer. That competitive advantage is shrinking.

HSBC analysts, led by chief multi-asset strategist Max Kettner, flagged in a Thursday note that a slide in chip prices coupled with a slowdown in AI spending and rollout ranks among their "biggest worries" for the market.

Wall Street Is Split on What Comes Next

Not everyone is running for the exits.

Morgan Stanley reiterated Broadcom as overweight Thursday and raised its price target to $502 per share from $485, calling results "very strong amid even higher expectations" while noting the growth trend "remains very strong," per CNBC.

Keith Lerner, CIO at Truist Wealth, told CNBC Wednesday evening: "We've come a long way. Fundamentals are solid. Bull market still deserves a benefit of the doubt."

Vinh at Keybanc said the pullback "makes sense" but he remains optimistic on Broadcom long-term.

Macquarie downgrading and Morgan Stanley raising its target on the same day after the same earnings report illustrates the uncertainty on the Street.

A Broader Market Pattern

The financial press is framing this as a standard miss story. But the Broadcom narrative was always: AI chip demand is infinite, hyperscalers will spend forever, and Broadcom owns Google's custom silicon business. Each of those assumptions is now in question.

AI spending growth is showing signs of plateauing. Google is building in-house alternatives. And Broadcom's first revenue miss in 18 months has exposed that market expectations had fully incorporated continued acceleration — not just strong results, but accelerating results.

CrowdStrike got hit 10% in the same premarket session despite guidance that was largely in line, per CNBC. PVH — Calvin Klein and Tommy Hilfiger's parent — plunged 22% after reiterating full-year guidance. Reiterating. Not cutting it. Reiterating it.

The market is punishing anything short of euphoria.

What This Means for Regular People

If you're holding a 401(k) heavy in tech or semiconductor ETFs, Thursday was a reminder that growth has limits. The AI boom is real. The spending is real. But when a company the size of Broadcom can lose $300+ billion in market cap overnight on a miss of $80 million in revenue, valuations have left little room for disappointment.

The Google-Broadcom split is worth monitoring. If Google successfully moves its custom AI chip design in-house — which, given Google's engineering depth, is plausible — Broadcom loses its most important customer relationship. That dynamic hasn't been fully reflected in Broadcom's valuation, even after Thursday's decline.

The chip sector had a historic run. Now it's finding out what gravity feels like.