Chip slump erases $1.3 trillion in stock market value

Friday’s US market selloff was led by the Nasdaq, which fell about 4.2% to its biggest one-day drop since April 2025, after a stronger-than-expected jobs report raised concerns the Fed will keep rates higher for longer. Nvidia shares fell over 6% and Broadcom nearly 8%. The S&P 500 dropped about 3% and Treasury yields rose, according to Reuters.

US tech and semiconductor stocks fell sharply on Friday as investors cooled on AI-driven valuations and digested stronger US jobs data. The PHLX Semiconductor Index dropped 10.3% (steepest since March 2020), extending a two-day slide that erased about 12% and ~$1.3 trillion in chipmakers’ value. Nvidia fell ~6%, Micron 13%, Marvell 17%, AMD ~11%, and Broadcom 7.9%. The Nasdaq fell 1.4% and S&P 500 0.7%.

SpaceX filed Amendment No. 2 on June 3 adding a June 5, 2026 Cloud Service Agreement with Google LLC for about 110,000 NVIDIA GPUs plus CPUs and related components. Google will pay $920 million per month from Oct 2026 to Jun 2029 (~$29.4 billion), with delivery terms and exit options. The IPO S-1 reserves 5% for “friends and family” of executives, without a lockup. It also says it may issue significant equity for future transactions.

U.S. stocks fell sharply on Friday, ending a nine-week winning streak as technology and semiconductor shares led losses. The Nasdaq dropped 4.18% to 25,709.43, the S&P 500 fell 2.64% to 7,383.74, and the Dow fell 1.35% to 50,866.78. The Labor Department said May jobs rose 172,000, above forecasts, raising expectations the Fed may keep rates higher longer. The Philadelphia Semiconductor Index fell over 11%, with major chipmakers including Nvidia, Intel, AMD, Micron, and Broadcom down.

Apollo and Blackstone completed a $35 billion private credit financing for Anthropic, one of the largest such deals, to fund AI infrastructure expansion. The package will finance an SPV to buy Google custom TPUs and lease them to Anthropic. Senior debt includes $6B A1 notes (1% above Treasuries) and $24B A2 notes (5.75% coupon), supported by Broadcom’s residual value agreement; a $4.5B B tranche (8.5% coupon) lacks that support.

The article says AI-driven GPU demand is tightening semiconductor supply, especially memory chips, and contributing to stock volatility. It cites a Bain & Company report that GPU demand could raise upstream component demand by 30%+ by 2026 and Reuters linking memory shortages to swings in SOXX. It notes Nvidia’s market value rose by over $2 trillion in 2024 and Foxconn warned of a 2024 outlook hit from AI-server chip shortages.