Thread: Friday June 5, 2026 | Chip Selloff Erases Over $1 Trillion in U.S. Stock Market Value

Chip Selloff Erases Over $1 Trillion in Stock Market Value

By Reuters
|
June 5, 2026, at 3:54 p.m.

https://money.usnews.com/investing/n...k-market-value

REUTERS

FILE PHOTO: Computer motherboard and chip appear in this illustration taken August 25, 2025.
REUTERS/Dado Ruvic/Illustration/File Photo

By Noel Randewich

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, Micron Technology and Advanced Micro Devices, as Broadcom's *weak report earlier this week *reverberated across Wall Street.

The PHLX chip index 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 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 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%.


Reporting ​by Noel Randewich
Editing by Rod Nickel

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