AI chip stocks fell about 10% in a single session last week after Broadcom posted record results but did not raise its full-year outlook for AI chips, yet major cloud operators plan to spend around $700 billion on capital expenditures in 2026.

The Nasdaq Composite fell about 4.2% on Friday, its steepest single-day drop since early 2025, with semiconductor stocks sliding about 10% in that single session. About $1.3 trillion in value came off U.S.-traded chipmakers on Friday.

Four major U.S. cloud operators collectively plan to spend around $700 billion on capital expenditures to support data centers and chips in 2026 — nearly double what they spent in 2025 — with three of the four raising those plans when they reported in late April.

Nvidia reported revenue rose 85% year over year to a record $81.6 billion in its fiscal first quarter of 2027 (period ended April 26, 2026), with its data center business growing 92%. Broadcom posted record fiscal second-quarter revenue of $22.2 billion, up 48% year over year, with AI chip revenue jumping 143% to $10.8 billion.