The US Stock Market experienced a single-day market cap loss of $1.3 trillion in chip stocks, with the Philadelphia Semiconductor Index seeing its largest daily decline since 2020.

June 6 (Friday): U.S. chip stocks took a steep dive Friday, wiping roughly $1.3 trillion off the total market capitalization of publicly traded U.S. chipmakers. Heavyweight AI-related names including NVIDIA, Micron Technology, and AMD all logged sharp pullbacks. The sell-off follows this week’s Broadcom quarterly report, which fell short of lofty market expectations for its custom AI chip business, with the fallout continuing to reverberate across Wall Street. The Philadelphia Semiconductor Index (SOX) plunged 10.3% on Friday, its biggest single-day drop since March 2020, when the COVID-19 pandemic slammed global markets. The index notched a combined 12% decline over Thursday and Friday. Prior to this week’s rout, the SOX had just touched an all-time high on Wednesday, and even after Friday’s sell-off, it remains 73% higher for the year-to-date. For individual stocks: Market-cap leader NVIDIA fell roughly 6%, erasing over $300 billion in value. Micron Technology dropped 13%, wiping around $150 billion from its market cap. Marvell Technology tumbled 17%, while AMD slid nearly 11%. Broadcom, meanwhile, shed 7.9% Friday, bringing its two-day decline to nearly 20%. Triple D Trading trader Dennis Dick noted that many investors had been blindly buying the dip—a strategy that worked for months before unraveling Friday. Separately, stronger-than-expected U.S. jobs data stoked concerns about prolonged higher interest rates, weighing on overall U.S. stock risk appetite and pulling the S&P 500 index down 2.6%. Ohsung Kwon, chief U.S. equity strategist at Wells Fargo, pointed to the semiconductor sector being severely overbought as the trigger for the sell-off, though he added this downturn does not signal the end of the chip bull market.