The semiconductor sector suffered its worst single-day selloff since April 2025, shedding more than $1 trillion in combined market value on Friday. The PHLX chip index fell nearly 8.5%, extending a two-day slide triggered by Broadcom's weak quarterly report earlier this week, which revealed demand for its custom AI chips failed to meet lofty projections.
Nvidia, the world's most valuable chipmaker, dropped about 6%, losing over $300 billion in market capitalization. Micron Technology plunged 11%, wiping out $127 billion, while Marvell Technology fell 12% and AMD lost 10.5%. Broadcom itself declined another 7.5%, bringing its two-day loss to 19%.
Investor concerns over high valuations coincide with Elon Musk preparing a blockbuster IPO for SpaceX next week at a $1.75 trillion valuation. Higher interest rate fears after stronger-than-expected jobs data added to the broader market rout, with the S&P 500 down 2.3%.