Chip selloff erases over $1 trillion in stock market value

June 5 (Reuters) – U.S.-traded chipmakers plunged on Friday, losing over $1 trillion in market value, with deep losses in AI heavy hitters ​including Nvidia (NVDA.O), opens new tab, Micron Technology (MU.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab, as ‌Broadcom’s (AVGO.O), opens new tab weak report earlier this week reverberated across Wall Street.

The PHLX chip index (.SOX), opens new tab slumped almost 8.5% in afternoon trading, putting it on track for its ​deepest one-day loss since Wall Street’s “Liberation Day” tariff selloff ​in April 2025.

Friday’s selloff added to losses on Thursday after ⁠Broadcom gave a quarterly report that showed demand for its ​custom AI chips business falling short of lofty expectations.

The PHLX’s combined loss ​of more than 10% over two sessions shows investors are becoming more concerned about pricey, high-flying tech stocks just as Elon Musk prepares a blockbuster ​initial public offering next week for SpaceX at an exceedingly high $1.75 ​trillion valuation.

Even after Friday’s losses, the PHLX chip index remains up 75% year ‌to ⁠date.

Nvidia, the world’s most valuable chipmaker, fell about 6%, cleaving more than $300 billion from its market capitalization.

Micron Technology tumbled 11%, evaporating $127 billion in market value. Recent investor darling Marvell Technology (MRVL.O), opens new tab gave back ​12%, while AMD ​lost 10.5%.

“You’ve had ⁠a lot of people here that were just blindly buying the dip,” said Dennis Dick, a ​proprietary trader at Triple D Trading. “Blindly buying the dip ​had ⁠been winning you money, but that ended today.”

Worries about higher interest rates also spooked investors across the U.S. stock market following stronger-than-expected jobs ⁠data, ​and the S&P 500 (.SPX), opens new tab was down 2.3%.

One ​of the biggest beneficiaries of the AI race, Broadcom, was last down 7.5%, bringing ​its two-day loss to 19%.