BlockBeats news, on June 6, U.S. semiconductor stocks plunged sharply on Friday, with the combined market value of U.S.-listed chip manufacturers erasing approximately $1.3 trillion. Major AI-related stocks such as NVIDIA, Micron Technology, and AMD all recorded significant declines. This follows Broadcom’s quarterly report released this week, which showed that demand for its custom AI chips fell short of market expectations, continuing to ripple through Wall Street.
The Philadelphia Semiconductor Index fell 10.3% on Friday, marking its largest single-day decline since the COVID-19 pandemic shook global markets in March 2020. The index dropped a cumulative 12% over Thursday and Friday. However, prior to this decline, the Philadelphia Semiconductor Index had reached a new all-time high on Wednesday, and despite Friday’s sell-off, it is still up 73% year-to-date.
Individually, NVIDIA, the world's largest chipmaker by market capitalization, fell about 6%, erasing over $300 billion in market value; Micron Technology dropped 13%, losing approximately $150 billion in market value; Marvell Technology declined 17%, and AMD fell nearly 11%. Broadcom slid 7.9% on Friday, with a two-day cumulative decline nearing 20%.
Triple D Trading trader Dennis Dick said that many investors had been blindly buying the dip—a strategy that had worked until it ended on Friday. Additionally, stronger-than-expected U.S. employment data fueled concerns over higher interest rates, dampening overall risk appetite in the stock market, causing the S&P 500 to decline 2.6%. Wells Fargo’s Chief Equity Strategist Ohsung Kwon noted that the semiconductor sector had become significantly overbought, leading to selling pressure, but he does not believe this signals the end of the semiconductor bull market.