The week started with records. It ended with a reckoning. AVGO reported the finest AI semiconductor quarter in its history Wednesday night, then Hock Tan declined to raise the full-year number, and the market decided that wasn't good enough. By Friday's close, the S&P 500 had shed 2.63% to 7,383 and the Nasdaq was down 4.18% to 25,709. The ten-week win streak is over. Now we figure out what it means.
AVGO: The Best Quarter That Wasn't Enough
Broadcom posted $22.19 billion in Q2 revenue, up 48% year-over-year, with AI semiconductor revenue hitting a record $10.8 billion, up 143% in a single year. EPS came in at $2.44 adjusted versus the $2.40 estimate, with six core custom chip customers including Anthropic, Google, Meta, and OpenAI now driving AI revenue. The numbers were historic. The market didn't care.
Tan didn't raise the company's full-year AI semiconductor revenue forecast, reiterating guidance of "in excess of $100 billion" for fiscal 2027, which investors had expected to be bumped higher given the momentum. The stock was down approximately 15% Thursday on disappointment that the full-year target wasn't raised. It continued lower Friday, closing the week around $385.
Critically for the fund: Broadcom expects AI semiconductor revenue to double in the second half of 2026, with a full-year forecast of $56 billion, approximately 180% growth from fiscal 2025. The company also announced a partnership with Apollo, Blackstone, and others to deploy over 20 gigawatts of AI compute capacity, with the first tranche valued at $35 billion. This is not a demand story. It is a valuation expectations story, and those are very different problems.
Jobs Friday: The Warsh Fed Gets Its Excuse to Hold
Nonfarm payrolls jumped 172,000 in May, far above the Dow Jones consensus estimate of 80,000, while the unemployment rate held at 4.3%. Average hourly earnings rose 0.3% for the month and 3.4% year-over-year, both in line with estimates. The labor market is not cooperating with the rate-cut narrative.
March payrolls were revised up 29,000 to 214,000 and April was revised up 64,000 to 179,000, meaning employment in March and April combined was 93,000 higher than previously reported. Fed officials will be watching these numbers closely ahead of the June 16–17 FOMC policy meeting. A June cut is now functionally off the table. The strong print also pushed Treasury yields higher Friday, compounding the pressure on high-multiple tech.
The Warsh Fed was already hawkish. A 172K print against an 80K forecast gives it room to stay exactly where it is. For the fund's nuclear pillar, higher-for-longer reinforces the power pricing thesis. For rate-sensitive valuations in AI software and crypto, it's a headwind worth monitoring.
CEG: The Secondary Overhang Clears
Constellation Energy completed a secondary offering and share repurchase this week, having priced 11 million shares at $281.00 on June 1. Secondary offerings create near-term price pressure but resolve the overhang. The company has been expanding its nuclear capacity and securing long-term clean power contracts with AI data center customers, locking in premium, carbon-free energy revenues over many years.
For CEG, the secondary is dilutive but not damaging to the long-duration PPA thesis. It clears the calendar overhang without changing the fundamental case. Net assessment: neutral to slightly constructive. A stabilization above the offering price next week would confirm it was absorbed cleanly.
META's Capital Raise and CRCL's Structural Squeeze
Meta was reportedly looking at selling billions in new shares, just days after Alphabet raised $80 billion to shore up its capex efforts, and META fell approximately 7% on the news Friday. This week's pullback is noise against the AI ad monetization thesis.
In Digital Finance, CRCL faces a structural narrative shift that deserves honest assessment. Every major distribution channel in traditional finance is moving into stablecoin issuance, doing so on the regulatory pathway the GENIUS Act explicitly created for banks, and this is the part of the story that matters for repricing. USDC has become the default stablecoin for new U.S. institutional integrations, with GENIUS Act compliance, broker-dealer capital eligibility, BNY Mellon custody, and BlackRock-managed reserves providing the institutional foundation. The distribution moat is real. The competitive moat is narrowing. The thesis is intact but the competitive picture is worth watching closely.
| Pillar | Key Names | Week Signal | Thesis Impact |
|---|---|---|---|
| AI Chips / Hardware | NVDA, AMD, AVGO | 🔴 AVGO −15%, NVDA −6%, AMD −6% | Price pain, thesis intact. AI revenue +143% YoY is not a broken supercycle. |
| Nuclear / Power | VST, CEG, LEU | 🟡 CEG secondary resolved; LEU binary event in 24 days | Neutral. Higher-for-longer rates strengthen long-term PPA economics. |
| Digital Finance Rails | COIN, CRCL | 🔴 Bitcoin worst week since Feb; CRCL under pressure | Mildly weakened. Bank stablecoin entry compresses CRCL moat narrative. |
| AI Software / Platforms | NOW, META | 🔴 META −7% on share raise news | Tactical noise. META capex raise is structurally bullish for AI build-out. |
| Specialized GPU Cloud | CRWV | 🟡 No direct news; AVGO selloff creates sympathy pressure | Neutral. $66.8B backlog and NVIDIA backstop unchanged. |
The Calendar Is Loaded
The June 16–17 FOMC meeting is now ten days out. After a 172K jobs print and a PCE reading that recently hit its highest level in nearly three years, the Warsh Fed has no political cover to cut. Watch for pre-FOMC Fed speaker commentary Monday through Wednesday, any hawkish signals will extend the yield-driven pressure on high-multiple AI names. CPI for May drops mid-week and will be the last major inflation print before the FOMC decision.
Oracle (ORCL) reports earnings Monday June 9 after close, a direct read-through for enterprise AI software demand and cloud infrastructure. A strong quarter would be a tailwind for NOW and the AI software pillar broadly. Watch Oracle's AI-related bookings commentary closely; that is the real signal. LEU's DOE contract expiration on June 30 is now 24 days away, and the uranium enrichment binary event is entering its terminal window.
The AVGO Decision Point
The most important development next week is the AVGO selloff itself. AVGO traded between a low of $395.02 and a high of $413.80 on Friday, materially below the pre-earnings all-time high of $466. AI semiconductor revenue reached a record $10.8 billion, up 143% year-over-year, that is not a company in trouble. That is a company whose stock ran too far ahead of even its extraordinary reality.
The week's selloff was sharp, sentiment-driven, and entirely explicable by the gap between investor expectations and what Hock Tan was willing to put in writing. The underlying capex commitments from Google, Anthropic, OpenAI, and Meta are multi-year contracts, not quarterly guidance numbers. The weakness is a repricing of expectations, not a break in the business.
"The AI capex cycle is not done", an AI strategist on CNBC Friday morning, and the most important sentence said on television this week.
This document is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. The Nova X Convergence Fund is a private investment portfolio. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Published June 6, 2026.