{"id":719090,"date":"2026-06-06T13:57:18","date_gmt":"2026-06-06T13:57:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/719090\/"},"modified":"2026-06-06T13:57:18","modified_gmt":"2026-06-06T13:57:18","slug":"chip-selloff-erases-us1-3-trillion-in-stock-market-value","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/719090\/","title":{"rendered":"Chip selloff erases US$1.3-trillion in stock market value"},"content":{"rendered":"

U.S.-traded chipmakers plunged on Friday, losing about US$1.3-trillion in market value, \u200cwith deep losses in AI heavy hitters including Nvidia (NVDA-Q<\/a>), Micron Technology (MU-Q<\/a>) and Advanced Micro Devices (AMD-Q<\/a>), as Broadcom\u2019s (AVGO-Q<\/a>)weak \u2060report earlier \u200bthis week reverberated across Wall Street.<\/p>\n

The PHLX chip index slumped 10.3% in its deepest one-day loss since March 2020, when the coronavirus pandemic threw global markets into a tailspin.<\/p>\n

Friday\u2019s selloff added to \u200blosses on Thursday after Broadcom issued a \u200cquarterly report that showed demand for its custom AI chips business falling short of lofty expectations.<\/p>\n

The PHLX\u2019s combined loss of 12% over two sessions shows investors are becoming more concerned about pricey, high-flying tech \u200cstocks \u200bjust as Elon Musk \u200cprepares a blockbuster initial public offering next week for SpaceX \u200bat an exceedingly high $1.75 trillion valuation.<\/p>\n

The \u2060chip index hit a record high on Wednesday, \u2060and even after Friday\u2019s losses it remains up 73% year to date.<\/p>\n

Nvidia, \u200bthe world\u2019s most valuable chipmaker, fell about 6%, cleaving more than $300 billion from its market capitalization.<\/p>\n

Micron Technology tumbled 13%, evaporating about $150 billion in market value. Recent investor darling Marvell Technology gave back 17%, while AMD lost \u2060almost 11%.<\/p>\n

\u201cYou\u2019ve had a lot of people here that were just blindly buying the dip,\u201d said Dennis Dick, a proprietary trader at Triple D Trading. \u201cBlindly buying the dip had been winning you money, but that ended today.\u201d<\/p>\n

Worries about higher interest \u2060rates also spooked investors across the U.S. \u200bstock market following stronger-than-expected jobs data, and the S&P 500 fell \u20602.6%.<\/p>\n

One of the biggest beneficiaries of the AI race, Broadcom, lost 7.9%, bringing \u200cits two-day loss to almost 20%.<\/p>\n

\u201cThe semiconductor sector was way overbought. \u200bThat\u2019s why we\u2019re seeing the sell-off. I don\u2019t think it\u2019s the end of the (semiconductor) bull market,\u201d said Ohsung Kwon, Chief Equity Strategist at Wells Fargo.<\/p>\n","protected":false},"excerpt":{"rendered":"U.S.-traded chipmakers plunged on Friday, losing about US$1.3-trillion in market value, \u200cwith deep losses in AI heavy hitters…\n","protected":false},"author":2,"featured_media":719091,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-719090","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/719090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=719090"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/719090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/719091"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=719090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=719090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=719090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}