June 7, 2026
Chip rout wipes $1.3 trillion off US semiconductor stocks
US-traded semiconductor stocks lost about $1.3 trillion in value on Friday as Broadcom’s weak report deepened a selloff in AI-linked shares. The PHLX chip index posted its worst one-day drop since March 2020.
June 7, 2026
WASHINGTON: US-listed chipmakers sank sharply on Friday, wiping out about $1.3 trillion in market value as weakness spread across major artificial intelligence-linked stocks following Broadcom’s quarterly report earlier in the week.
The PHLX semiconductor index dropped 10.3% in its steepest single-day fall since March 2020, when the coronavirus pandemic rattled global markets. The selloff followed losses on Thursday after Broadcom reported results that showed demand for its custom AI chip business did not meet elevated market expectations.
Over two sessions, the index has fallen 12%, indicating rising investor unease over richly valued technology shares. The index had reached a record high on Wednesday and, despite Friday’s slide, it is still up 73% so far this year.
Among individual stocks, Nvidia fell about 6%, cutting more than $300 billion from its market capitalisation. Micron Technology dropped 13%, erasing about $150 billion in value. Marvell Technology slid 17%, while Advanced Micro Devices lost nearly 11%.
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