# The PHLX chip index slumped 10.3% in its deepest one-day loss since March 2020.

*semiconductor · news · 2026-06-06 · The Hindu Business Line*

## Key points

- U.S.-traded chipmakers lost about $1.3 trillion in market value in a single day.
- The PHLX chip index dropped 10.3%, its largest one-day fall since March 2020.
- Broadcom's quarterly report revealed weaker-than-expected demand for its custom AI chips business.
- Nvidia alone lost over $300 billion in market capitalization after falling 6% Friday.
- Marvell Technology and Micron Technology suffered respective single-day drops of 17% and 13%.

U.S.-traded chipmakers plunged on Friday, losing about $1.3 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 10.3% in its deepest one-day loss since March 2020, when the coronavirus pandemic threw global ‌markets into a tailspin. Friday's selloff added to losses on Thursday after Broadcom issued a quarterly ‌report that showed demand for its custom ‌AI chips ⁠business falling short of lofty expectations. The PHLX's ⁠combined loss of 12% 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. The chip index hit a record high on Wednesday, and even after Friday's losses it remains ‌up 73% 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 13%, evaporating about $150 billion in market value. Recent investor darling Marvell Technology gave back 17%, while AMD lost ‌almost 11%. "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 fell 2.6%. One of the biggest beneficiaries of the AI race, Broadcom, lost 7.9%, bringing ⁠its two-day loss to almost 20%. "The semiconductor sector was ⁠way overbought. That's why we're seeing the sell-off. I don't think it's the end of ‌the (semiconductor) bull market," said Ohsung Kwon, Chief Equity Strategist at Wells Fargo. Published on June 6, 2026

**Companies:** Nvidia, Broadcom, Micron Technology, Advanced Micro Devices, Marvell Technology
**Countries:** United States

[Read the full story on The Hindu Business Line](https://www.thehindubusinessline.com/markets/ai-chip-stocks-lose-13-trillion-in-value-as-semiconductor-selloff-deepens/article71068390.ece)

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