Broadcom's weak report is dragging semiconductors down 12-13%, cooling recent AI momentum. Cybersecurity stocks like CrowdStrike and Palo Alto are also weak after strong runs. Geopolitics (US-Iran) keeps oil elevated, but gold is the commodity standout. The market is taking a normal breather after a big run; June consolidation is not unusual.

Chip stocks are sharply lower linked to Broadcom. AI momentum is cooling but not reversing. Cybersecurity names had been top S&P performers. Rates and inflation remain key narratives.

Broadcom revenue rose 48% YoY to $22.2B, AI revenue up 143%, guidance strong with Q3 revenue expected to rise 84%. However, a small topline miss and lack of guidance acceleration disappointed high expectations. Gross margin declined due to mix shift to lower-margin AI chips. The stock reflects a 'price to perfection' dynamic.

Adjusted EPS $2.44, 69% EBITDA margin, $10B quarterly FCF are industry records. AI bookings over $30B with multi-year demand visibility. Market is punishing any miss, even slight.

CrowdStrike had a strong report: revenue up 26% YoY, record net new ARR of $256M, 34% FCF margin. However, expectations were elevated; ARR growth didn't meaningfully exceed expectations, causing sell-side disappointment. Operating costs rose 15% YoY, GAAP profitability inconsistent. Valuation is extremely expensive on a forward basis.

Falcon adoption expanding, large deal activity strong. Company positioning as core AI security infrastructure. Stock reaction shows bar was very high; any lack of further upside is punished.

Five Below had a blowout quarter: revenue up 33%, comps up 23%, net income up 160%. Raised full-year outlook for 14% sales growth. However, management flagged macro uncertainty and potential consumer slowdown later this year. Higher labor costs are a concern. The stock reaction reflects doubts about growth durability in a weakening consumer environment.

Growth led by games and toys, 49 new stores opened. Expectations were elevated, contributing to negative reaction despite strong results.

SpaceX IPO expected June 12th with a $135 price, valuing it at ~$1.75 trillion, targeting $75B raise (largest IPO in history). Revenue ~$18.7B but net losses of $4.9B driven by AI investment. Key debate is whether it's truly a trillion-dollar company. Valuation is the biggest risk, setting up for volatile early trading.

Unusual structure: single price instead of a range. Starlink could prove infrastructure value. High-growth, capital-intensive model in hyper-growth phase.