Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Kintania with David Faber, Leslie Picker, here post-9 of the New York Stock Exchange. Sarah Eisen's on assignment.

Coming up this hour, what a morning. Our cracks beginning to form in the AI trade. We'll talk about Broadcom's pullback today on what it signals about the tech ecosystem.

Bitcoin falling to its lowest level since February as it paces for its worst first half in four

years. We'll talk to bullish CEO, former NYC president Tom Farley, about whether it's the start of a new

crypto winter. And as the SpaceX IPO Roadshow gets ready to kick off,

we'll hear from one analyst who says the company is worth less than half of its IPO target valuation.

All right, let's begin with technology overall, broadcom crowd strike,

a general sell-off going on this morning in part because of those broadcom earnings.

In fact, it's failure to raise its guidance for AI revenue in particular for fiscal year 27 is

pressuring, well, names across the board, whether it's Nvidia or Intel or Arm or AMD.

Mike Santoli's here with us. Interesting rotation this morning. Exactly. So the first instinct of

this market when the leadership group that everybody knew was kind of monstrously overstretched to the

upside and actually kind of threatening to eat the rest of the index, which is chips and AI

hardware pulls back 5% in the Philadelphia Semi Index. And the first instinct is to find other

things to buy, at least for now.

In fact, breath is positive, so it's one of these, you know, going from narrow and abroad.

That's the positive way this could rebalance itself. It's only one day. You don't want to say it's going to work. One thing I think helping the overall market, you see there the semiconductor ETF, it's a 24% drop from yesterday's

close to get to its 50-day average, which would just be like a very normal digestion thing to do.

It doesn't have to get there, but it's just that tells you how elevated it was relative to

its longer-term trend. So I do the one thing helping the overall market is what a laggard

Mag 7 as a group has been.

And so you've seen the leaders today in terms of upside contribution to the S&P, alphabet, which was 12% off its high.

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