{"id":1120,"date":"2026-06-05T20:09:56","date_gmt":"2026-06-05T20:09:56","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=1120"},"modified":"2026-06-05T20:09:56","modified_gmt":"2026-06-05T20:09:56","slug":"chip-selloff-erases-over-1-trillion-in-stock-market-value","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=1120","title":{"rendered":"Chip selloff erases over $1 trillion in stock market value"},"content":{"rendered":"
June 5 (Reuters) – U.S.-traded chipmakers plunged on Friday, losing over $1 trillion in market value, with deep losses in AI heavy hitters \u200bincluding Nvidia (NVDA.O)<\/svg>, opens new tab<\/span>, Micron Technology (MU.O)<\/svg>, opens new tab<\/span> and Advanced Micro Devices (AMD.O)<\/svg>, opens new tab<\/span>, as \u200cBroadcom’s (AVGO.O)<\/svg>, opens new tab<\/span> weak report earlier this week reverberated across Wall Street.<\/div>
The PHLX chip index (.SOX)<\/svg>, opens new tab<\/span> slumped almost 8.5% in afternoon trading, putting it on track for its \u200bdeepest one-day loss since Wall Street’s “Liberation Day” tariff selloff \u200bin April 2025.<\/div>
Friday’s selloff added to losses on Thursday after \u2060Broadcom gave a quarterly report that showed demand for its \u200bcustom AI chips business falling short of lofty expectations.<\/div>
The PHLX’s combined loss \u200bof 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 \u200binitial public offering next week for SpaceX at an exceedingly high $1.75 \u200btrillion valuation.<\/div>
Even after Friday’s losses, the PHLX chip index remains up 75% year \u200cto \u2060date.<\/div>
Nvidia, the world’s most valuable chipmaker, fell about 6%, cleaving more than $300 billion from its market capitalization.<\/div>
Micron Technology tumbled 11%, evaporating $127 billion in market value. Recent investor darling Marvell Technology (MRVL.O)<\/svg>, opens new tab<\/span> gave back \u200b12%, while AMD \u200blost 10.5%.<\/div>
“You’ve had \u2060a lot of people here that were just blindly buying the dip,” said Dennis Dick, a \u200bproprietary trader at Triple D Trading. “Blindly buying the dip \u200bhad \u2060been winning you money, but that ended today.”<\/div>
Worries about higher interest rates also spooked investors across the U.S. stock market following stronger-than-expected jobs \u2060data, \u200band the S&P 500 (.SPX)<\/svg>, opens new tab<\/span> was down 2.3%.<\/div>
One \u200bof the biggest beneficiaries of the AI race, Broadcom, was last down 7.5%, bringing \u200bits two-day loss to 19%.<\/div>