The chip rout
Latest Processing Gap
The gap: the market is now pricing AI not on promise but on delivery, and the bar moves up faster than any single quarter can clear. The processing is brutal and immediate — Wall Street keeps its sensor pointed straight at the thing and reads the dial without flinching. "More driven by positioning than fundamentals," one strategist said, which is another way of saying the instrument is so sensitive it now registers its own jitter.
Appearances
On 4 June the Nasdaq fell 4% — its worst day since April 2025 — as roughly $1.7 trillion evaporated from AI-exposed equities. The trigger was almost comically small relative to the wreckage: Broadcom guided Q3 AI-chip sales to $16B against a $17.2B estimate and declined to raise its full-year forecast. A "sell-the-news" reaction took Broadcom down 14% and rippled through the entire supply chain.
The gap: the market is now pricing AI not on promise but on delivery, and the bar moves up faster than any single quarter can clear. The processing is brutal and immediate — Wall Street keeps its sensor pointed straight at the thing and reads the dial without flinching. "More driven by positioning than fundamentals," one strategist said, which is another way of saying the instrument is so sensitive it now registers its own jitter.