Broadcom’s guidance cracked the AI trade — at least for a day. After surging 4.7% in after-hours trading Wednesday on a seemingly blowout earnings report, Broadcom reversed sharply when markets digested the fine print. The company’s Q2 revenue of $22.19 billion came in just below the $22.27 billion analyst consensus, and while the $29.4 billion Q3 guidance was extraordinary on the surface, Wall Street had whispered numbers far higher. Shares fell between 5% and 12% through the session — one of the chipmaker’s worst single-day drops in years — dragging down the broader semiconductor complex with it.

CrowdStrike added to the pain. The cybersecurity leader reported first-quarter results after Wednesday’s close that came in largely in line with expectations, but rising operating expenses and cautious forward commentary sent shares tumbling 9.5% to 11%. The double-punch from Broadcom and CrowdStrike put AI-adjacent and cloud software investors on the defensive. Super Micro Computer fell 7.2%, Ciena — an optical networking name closely tied to AI infrastructure — cratered 18.1% on its own earnings miss.

Meanwhile, everything else went up. With chip money flowing out, it had to go somewhere. Healthcare led the charge: UnitedHealth surged 5.7% after Bank of America upgraded the stock to Buy with a $450 price target. Eli Lilly rose 4.5% on pipeline momentum. JPMorgan Chase gained 3%, Robinhood jumped 3.2% after FINRA officially eliminated the controversial $25,000 pattern day-trading rule — a structural positive for retail brokers. Walmart and Costco both added roughly 1%. Eight of the S&P 500’s eleven sectors closed in the green. The rotation was broad, deep, and swift.

Oil pulled back slightly — Brent fell to $96.70 and WTI to $95.17 — as conflicting diplomatic signals tempered the prior session’s spike. The easing in crude helped consumer and financial stocks breathe easier, even as geopolitical uncertainty lingered.