By Anhata Rooprai, Zaheer Kachwala and Stephen Nellis
June 3 (Reuters) – Chipmaker Broadcom missed Wall Street expectations for second-quarter revenue on Wednesday and its top executive left a previous 2027 sales forecast unchanged, sending its shares down more than 13% in extended trading.
Second-quarter revenue of $22.19 billion missed estimates of $22.27 billion, as Broadcom races with Nvidia whose dominant graphics processing units remain the industry standard for AI workloads.
Broadcom also said it expects AI chip revenue of $16 billion in its current third quarter, slightly below estimates of $16.36 billion, according to analysts polled by Visible Alpha.
Chief Executive Officer Hock Tan said Broadcom now expects to ship more than 10 gigawatts’ worth of AI chips in 2027 – a slight increase from previous estimates – but stuck to the company’s long-range forecast of $100 billion in sales from those chips.
“Nothing slows down what was estimated prior – they just didn’t raise it,” Ben Bajarin, chief executive of technology consultancy Creative Strategies, said of the long-range forecast.
Rivals such as Marvell Technology are also making inroads with key hyperscale customers. At the end of May, Marvell said its custom chip business would surpass $10 billion in revenue in 2029, and forecast second-quarter revenue above estimates.
The boom in inference – the process by which models respond to user queries – has made custom chips crucial to the industry, driving more orders for advanced processors and intensifying competition.
Broadcom’s ability to meet AI demand has also been tested by a strained supply chain. But company executives on the post-earnings call assuaged such concerns, saying Broadcom is “very comfortable” that it has secured supply for 2026 and 2027.
“Today’s miss on revenue and subsequent post-market pull back (in shares) shows the market demands perfection for this chip rally to keep running,” said Ryan Lee, senior vice president of product and strategy at Direxion.
Broadcom forecast third-quarter revenue of about $29.4 billion, compared with analysts’ average estimate of $28.54 billion, according to data compiled by LSEG.
CORE BUSINESS REMAINS STRONG
Still, Broadcom has been one of the biggest beneficiaries of the AI race. Analysts view its core business as robust due to its lead position in the custom chip market with Meta and Alphabet’s Google as its hyperscale customers.
Big Tech firms are expected to spend more than $700 billion on AI infrastructure this year, up from around $400 billion in 2025.
As the AI industry evolves rapidly, machine learning capabilities and requirements vary greatly from company to company, resulting in large cloud companies building their own processors to slash costs and personalize workloads.
Broadcom plans to ship 10 gigawatts worth of compute capacity next year and plans “a lot more” in 2028, Tan said during the earnings call.
“Q2 semiconductor revenue from AI of $10.8 billion grew 143% year-over-year, above our forecast, driven by increasing demand for custom AI accelerators and AI networking,” he said in a statement.
(Reporting by Zaheer Kachwala and Anhata Rooprai in Bengaluru and Stephen Nellis in San Francisco; Editing by Arun Koyyur and Cynthia Osterman)
Bitcoin’s [BTC] recent fall has brought fear back into the market.
However, does this mean the market is in real trouble, or is it just a bad phase? Here’s what you need to know.
Strategy’s Bitcoin bet in its toughest phase yet
Strategy is reportedly sitting on its largest-ever unrealized loss, worth around $10.8 billion. After nearly six years of steadily buying Bitcoin, its overall position is now down about 17%.
Source: X
For reference, over the same period, the S&P 500 has gained by more than 100%.
Since the company sold 32 BTC at around $77,135 per coin, the value of its remaining Bitcoin holdings has fallen. MSTR’s stock itself is now down nearly 77% from its all-time high. This is one of the company’s most difficult crypto-market phases.
Short-term holders sell at a loss
In the last 24 hours, a large amount of BTC held at a loss moved to exchanges too. Profit-led inflows were almost absent.
It looks like recent buyers, especially those who entered near higher levels, may be choosing to exit as prices tumble.
Source: Cryptoquant
This usually happens during capitulation, when weaker hands sell and stronger holders absorb.
If loss-driven inflows slow down and Bitcoin stabilizes, the market may find support.
Interestingly, Bitcoin’s price started falling soon after the crypto market structure bill moved ahead in the Senate Banking Committee. This is peculiar because regulatory progress is usually seen as a positive.
Source: X
This could simply be liquidity rotation. However, one also wonders if prices are being pushed lower before clearer crypto rules arrive. This would let larger players buy BTC at cheaper levels.
Sellers in control?
At the time of writing, BTC had slipped and was trading near the lower end of its recent move.
The overheated RSI proved that the selling did become stretched. However, such a finding doesn’t automatically mean a rebound. The CMF was also negative, implying that capital was still going out of the market rather than flowing in.
Source: TradingView
So, is this a state of emergency? Not yet. It is a stress phase. A recovery needs stabilization first, not just panic selling.
Final Summary
Bitcoin’s fall has pushed Strategy into a $10.8 billion unrealized loss.
Ether at $250,000 would make Ethereum a $30 trillion network, larger than the U.S. Treasury market and comparable to all the gold ever mined.
But that’s the target Bitmine chairman Tom Lee laid out at Proof of Talk in Paris this week, with the move pitched as a 50x from current levels on the back of AI-driven payments and a corporate validator takeover of the network.
Let’s dive into the math of how that target may be reached, starting with supply. Ethereum’s circulating supply sits at 121.75 million ETH and is growing at 0.82% a year, because since the Dencun upgrade pushed most fee activity to cheaper layer-2 chains in 2024, the burn mechanism has collapsed to roughly 29,000 ETH a year against issuance of 1.03 million ETH.
At $250,000 a coin, that 0.82% drift turns into $250 billion of fresh ether issued every year.
The supply growth is not huge by itself. Gold supply expands at a similar pace, and the U.S. Treasury market grows much faster. Big assets can absorb new issuance if demand is strong enough.
However it puts to rest the old “ultrasound money” trade that was built on the idea that Ethereum could become a shrinking monetary asset while usage kept rising. That setup is not here right now. ETH supply is growing, slowly but steadily, so a 50x move has to come from demand doing almost all the work.
To get a sense of how far-out Lee’s target is, look at the ether-bitcoin ratio, which tracks how ether trades relative to bitcoin. The ratio has never crossed 0.15, a level it touched briefly at the 2017 peak. At today’s bitcoin price of $63,872, $250,000 ether would push that ratio to 3.91, more than 25 times that all-time high.
For the ratio to stay anywhere in its historical range while ether hits $250,000, bitcoin would have to rally to somewhere between $1.67 million and $2.94 million at the same time. So Lee’s call needs either bitcoin running alongside ether at similar multiples, or the pair breaking historical bounds wildly. Neither is in motion right now.
Lee further argued the Ethereum Foundation has dropped to roughly 0.1% of supply while corporate entities like Bitmine and SharpLink now control 7% of circulating ether collectively.
Public companies and governments hold 7.43 million ETH across 32 entities, or 6.16% of supply, with Bitmine alone at 5.42 million ETH and SharpLink at 869,000.
But holding ether and validating the network are different jobs. Validators are the operators that actually run the software securing Ethereum and earn the staking yield.
Of the 39.25 million ether currently staked, Lido, a decentralized staking protocol governed by a DAO of token holders, controls 19.4%, followed by Binance, ether.fi, Coinbase and Figment.
The top corporate treasuries are not running validators at anywhere near the scale Lee’s takeover thesis implies. Lido alone validates more ether than every public-company holder combined.
All in all, ether has to capture a chunk of global financial throughput that no asset has captured before, the burn has to outrun issuance again, the ETH-to-bitcoin pair has to recover more steeply than at any point in its history, and the corporate validator thesis has to actually translate into validating power.
The ETH-to-bitcoin pair turning on a real trend, not a one-week bounce, would be the first sign anything’s actually changing. Right now, however, the data tells a different one.
Crude Velocity stalked a fast early pace and came home impressively in winning the Pat Day Mile
Coady Photography Renee Torbit
Belmont Stakes Day is perhaps the biggest day of racing in the state of New York. There will be seven graded Stakes races run on the same card on which the final leg of the Triple Crown is contested. One of these Stakes is named for a trainer that set the standard for Belmont Stakes brilliance. Woody Stephens enjoyed a career conditioning Thoroughbreds that spanned seven decades. Yes, this Kentucky native won the Kentucky Derby twice (1974, 1984) and the Preakness once (1952), but he is best known for winning five consecutive runnings of the Belmont Stakes (1982-1986). The New York Racing Association renamed the Riva Ridge Stakes in his honor in 2006. A seven-furlong foray for three-year-olds, this edition of the Woody is loaded with speed and promises to be a great race for the speculating public. Packed with talent and carded as race 10, nine horses will compete for their share of $500,000 in this grade 1 event. The race is scheduled for June 6 with an expected post time of 4:52pm eastern. Let’s take a look at the entrants and provide a thought on each. The horses will be listed by post position with trainer, jockey, and morning line.
1 Gilded Bandit
Trainer: Bill Mott
Jockey: Junior Alvarado
Odds: 8-1
Two wins in three career stars with last victory coming in an allowance race on the Kentucky Derby undercard. His father, Charlatan, was super-fast. First start in Stakes company, but might have the stalking style to grab a piece of the pie in the end.
2 Obliteration
Trainer: Steve Asmussen
Jockey: John Velazquez
Odds: 8-1
Most experienced runner in the group with nine career starts that includes four wins and four second place finishes. Was victorious in Chick Lang Stakes last out on the Preakness undercard. Another stalker that could lay slightly off the pace and then pounce. Has the jockey that knows how to win races like this.
3 Six Speed
Trainer: George Weaver
Jockey: Irad Ortiz Jr.
Odds: 10-1
Set the early pace in the Kentucky Derby before fading to finish 13th. Has lots of early speed and often white smokes the tires right out of the starting gate. This son of Not This Time has been in the top three finishers in five of six lifetime starts and will look to take’em gate to wire. Think he likely gets caught against this group.
Six Speed needs to find another gear in the Woody Stephens as he will be challenged on the front end in this seven furlong affair.
Coady Photography Renee Torbit
4 Stradale
Trainer: Steve Asmussen
Jockey: Ricardo Santana Jr.
Odds: 12-1
Two wins, two seconds, and two third place finishes in six career starts means he is in the mix at the end. His father, Yaupon, had speed to burn. Normally a pace stalker, the early speed in this one means he needs to lay relatively close. Perhaps in too deep of water here.
5 Solitude Dude
Trainer: Saffie Joseph Jr.
Jockey: Flavien Prat
Odds: 6-1
Four wins in five career starts and two for two at this distance means there is a lot to like about this speedster. Has won by large margins with a run’em off their feet approach out of the gates. Gets a top jockey, but if he does not make the early lead can he settle and still get it done? At 6-1 we say play him all day.
6 Crude Velocity
Trainer: Bob Baffert
Jockey: Florent Geroux
Odds: 9-5
Unbeaten in three career starts with the latest coming in the Pat Day Mile on Kentucky Derby day. Stalked a solid early pace in that one and impressively ran past them all. Trained by one of the best at winning races like this and our top pick here.
7 Englishman
Trainer: Cherie DeVaux
Jockey: Jose Ortiz
Odds: 3-1
Very nice runner that has two wins and a second in three career starts. Lone defeat was last out when he set a more than solid early pace in the Pat Day Mile. His two wins were gate-to-wire and by a combined 14 ¾ lengths. He should be part of the early pace, but if he does not make the lead can he cope? Has a chance to be in top three but don’t think he wins against this group.
8 Civil Liberty
Trainer Doug O’Neill
Jockey: Antonio Fresu
Odds: 10-1
Finished in top three in four of five career starts with one win. His victory came at this distance at Keeneland in his last start on April 12. Trainer has a way of pulling off the upset and this pace stalker has a chance. Needs to step up but his conditioner’s slogan is “why not us”.
Taj Mahal has lots of early speed and his outside post is favorable
Laurel Park
9 Taj Mahal
Trainer: Brittany Russell
Jockey: Manny Franco
Odds: 15-1
Set the early pace in the Preakness before running out of gas and finishing a fading tenth. Enjoyed three consecutive wins in three career starts prior to that. From the outside post look for him to go and influence what could be some sizzling early fractions. He could be a factor, but don’t think he can be there at the end.
Tilray Brands Inc. (NASDAQ:TLRY) is one of the best sin stocks to buy now. On May 5, Tilray Brands Inc. (NASDAQ:TLRY) subsidiary BrewDog inked a 12-month partnership with Underbelly. The agreement is for the supply of beer at several UK festivals and venues.
Is This Why Tilray Brands Inc. (TLRY) is one of the Best Sin Stocks to Buy?
BrewDog is to become the official beer supplier at Christmas in Trafalgar Square, SKATE at Leicester Square, Underbelly Boulevard Soho, and Underbelly at The Edinburgh Fringe. The agreement aligns with both companies’ commitment to live entertainment.
The agreement comes on the heels of Tilray Brands accelerating its next phase of global growth and market leadership across healthcare, cannabis, and beverage. The company has already acquired Lyphe Group, a medical cannabis clinic and digital pharmacy platform. With the acquisition, it established its first vertically integrated patient-centric medical platform.
The company has also embarked on a strategic plan to expand its medical platform and accelerate the growth of iconic beverage brands like BrewDog. The company is also positioning itself to pursue opportunities around medical cannabis in the US.
Tilray Brands Inc. (NASDAQ:TLRY) is a leading global lifestyle and consumer packaged goods (CPG) company that operates at the intersection of the cannabis, beverage alcohol, wellness, and medical industries. Operating in over 20 countries, they focus on diversified revenue across four main business segments.
While we acknowledge the potential of TLRY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
A whale removed 130 million TRON [TRX] worth $43.13 million from Poloniex, reducing exchange-held supply as market sentiment weakened.
The transfer arrived shortly after TRX suffered a sharp rejection from local highs, creating a notable divergence between large-holder activity and broader trader expectations.
Exchange withdrawals often reduce immediate selling availability because tokens leave trading venues and move into private wallets.
In this case, the size of the transaction stood out because it represented one of the largest recent TRX movements.
However, the transfer occurred during a period of declining price action rather than strength.
The contrast suggested some large investors still preferred holding despite growing uncertainty, while the wider market continued questioning TRX’s near-term direction.
Why are traders leaning so bearish?
Derivatives traders showed little confidence despite the whale withdrawal.
Binance top traders held 60.99% short positions, while long positions accounted for only 39.01% of total exposure. As a result, the Long/Short Ratio dropped to 0.64, reflecting a strong bearish bias among professional participants.
Such positioning often reveals expectations of further downside, especially when it develops after a failed breakout attempt.
However, crowded short positioning can also create vulnerability if the price stabilizes unexpectedly.
Traders appeared focused on TRX’s recent technical deterioration rather than the reduction in exchange supply.
The disconnect between whale accumulation signals and derivatives sentiment highlighted a market struggling to establish a clear directional consensus.
Source: CoinGlass
Has TRX reached a critical support zone?
TRON [TRX] lost its multi-month ascending channel after failing to hold gains near the upper boundary.
The asset previously climbed toward $0.3766 before aggressive selling pressure pushed the price sharply lower.
Following that rejection, TRX fell beneath channel support and approached the key $0.3228 level, which now represented the most important support zone on the chart.
TRX price traded around $0.3330 at the time of writing, placing it between major support and resistance levels.
RSI also weakened significantly during the decline. The indicator dropped to 35.91 after spending several weeks near overbought territory above 70.
However, RSI had not yet entered extreme oversold conditions. If buyers defended $0.3228 successfully, TRX could attempt a rebound toward $0.3528.
Otherwise, sustained weakness would likely increase downside pressure and invalidate the recent bullish structure.
Source: TradingView
Where could liquidations pull price next?
Liquidation data revealed concentrated leverage zones both above and below current price levels.
The largest upside cluster emerged around $0.340 to $0.345, while another significant liquidity pocket developed near $0.325 to $0.326.
Markets frequently gravitate toward these areas because leveraged positions accumulate there over time.
During the recent decline, TRX briefly swept lower liquidity before recovering modestly. Nevertheless, several high-density liquidation levels remained active across the chart.
If the price moved higher, short liquidations around $0.340 could accelerate volatility and strengthen recovery attempts.
On the other hand, renewed selling pressure would likely target liquidity concentrated near the lower support region.
Source: CoinGlass
Is TRX preparing for a rebound or a deeper breakdown?
Despite the bearish positioning among Binance traders, the broader evidence continued favoring a rebound scenario rather than an immediate extension lower.
The $43.13 million whale withdrawal reduced exchange supply, while RSI fell near oversold territory after the recent selloff.
In addition, TRX approached the key $0.3228 support, where buyers could re-enter the market.
Liquidation clusters also remained concentrated above current prices near $0.340, making that area a likely target if recovery continued.
As long as support held, TRX would likely rebound toward $0.3528 rather than extend its decline.
Final Summary
Whale withdrawal reduced exchange supply while TRON [TRX] approached major support.
Bearish trader positioning remained elevated despite improving rebound conditions.
To many observers, the developments have revived a familiar question: Has Ethereum’s sprawling layer-2 ecosystem become too crowded?
Industry participants, however, argue the opposite.
“The thing to recognize is that anywhere where somebody would be running a smart contract on an existing blockchain, someone could equally run a layer two,” said Ben Fisch, co-founder and CEO of Espresso Systems. “We’re in a consolidation phase for general-purpose layer twos, not layer twos broadly.”
Ethereum layer-2s exploded over the past several years as improvements in rollup technology dramatically reduced the cost and complexity of launching new chains. Rollups work by processing transactions off Ethereum’s main blockchain, bundling hundreds of them together, and then periodically posting compressed transaction data back to Ethereum for settlement and security. The model allows applications to offer faster transactions and lower fees while still relying on Ethereum as the ultimate source of trust.
The result was a flood of networks built using infrastructure stacks such as Optimism’s OP Stack, Arbitrum Orbit and zkSync. But while launching a chain became easier, attracting users proved much harder.
“There were way too many general-purpose layer twos, which frankly don’t make sense as a product, because there’s no reason to have many, many versions of the same thing,” Fisch said.
The numbers support that view. Today, activity across Ethereum’s layer-2 ecosystem remains heavily concentrated among a handful of networks. Base and Arbitrum alone account for more than 80% of layer-2 DeFi total value locked (TVL), according to DefiLlama data.
(DefiLlama)
That concentration has only become more apparent as smaller chains struggle to maintain liquidity. Over the past six months, networks including Linea, World Chain, Starknet and Mantle have all seen declining bridge deposits. Linea’s deposits, for example, fell from $976 million in November 2025 to $367 million in May 2026, a decline of more than 60%.
Token Terminal
“I think only a few L2s with clear financial demand will be able to sustain themselves over time,” said Alice Hou, a former research analyst at Messari, to CoinDesk.
For Hou, the key issue isn’t whether layer-2 technology works, it’s whether a network can generate enough activity to justify its existence.
“Without enough blockspace demand, user activity or developer traction, there is little reason to continue maintaining an L2,” she said.
Ironically, the economics of launching a rollup have never looked better. Ethereum’s Dencun upgrade, introduced in 2024, dramatically reduced the cost of posting rollup data to Ethereum through blobs. According to Messari research, data availability costs now represent only a small fraction of operator expenses for many OP Stack chains.
“From an operator perspective, it is definitely cheaper to run an L2 today,” Hou said. “The economics of launching an L2 have become easier, but the real challenge is still generating enough sustained demand to make the network worth operating.”
That dynamic has created a paradox. The barriers to creating a blockchain continue to fall, but the barriers to attracting users continue to rise. As a result, many teams are discovering that simply offering another Ethereum-compatible chain is no longer enough.
“People have realized that all the different general-purpose blockchains compete with each other,” Fisch said. “If you want to succeed, you need to build out a differentiated application.”
From infrastructure to applications
The shift is already visible across the industry. Several blockchain projects that once emphasized infrastructure are increasingly focusing on payments, stablecoins, tokenized assets and other application-specific markets. Traditional financial institutions may become some of the biggest beneficiaries.
Fisch pointed to asset managers launching tokenized money-market funds, stablecoin issuers and tokenized deposit platforms as examples of businesses that have clear reasons to operate on-chain. For those firms, a dedicated layer-2 can offer lower costs, greater control and more predictable performance than deploying directly as a smart contract.
“The technology decision to run as a layer two is simply an option of running an application onchain,” Fisch said.
Hou said she agreed that distribution matters more than technology.
“Only L2s with a solid existing user base and a clear reason to benefit from blockchain infrastructure should launch their own networks,” she said.
That helps explain why exchanges remain among the strongest candidates. Coinbase’s Base has become the dominant example, leveraging the exchange’s existing customer base while integrating users into Ethereum’s broader DeFi ecosystem.
“The question should not be, ‘Can this company launch an L2?'” Hou said. “It should be: ‘Does this business already have enough distribution, financial activity and ecosystem synergies to make an L2 meaningfully useful?'”
“I don’t view layer twos as scaling Ethereum,” he said. “I view layer twos as leveraging the existing security properties of layer one.”
In that framework, Ethereum functions less as a destination and more as a settlement layer that applications can use when it makes sense.
“Ethereum is sort of a commodity that layer twos can choose to use,” Fisch said.
That vision aligns with a broader trend unfolding across crypto infrastructure. Rather than competing to become the next dominant blockchain, more projects are increasingly treating blockchains as modular components that can be assembled into larger products.
If that trend continues, the future Ethereum ecosystem may look very different from the one imagined during the rollup boom. Instead of hundreds of competing general-purpose chains fighting for liquidity, the winners could be a smaller number of networks tied to specific businesses, financial products and user communities.
