AI chip stocks lose $1.3 trillion as Nvidia, AMD and Micron lead semiconductor selloff
U.S.-listed semiconductor stocks fell sharply Friday, with the PHLX chip index down 10.3%—its biggest one-day drop since March 2020—adding to Thursday’s losses. The selloff followed Broadcom’s weaker-than-expected quarterly report on demand for custom AI chips. Nvidia fell ~6%, Micron -13%, AMD ~-11%, and Broadcom -7.9%.
Near-term risk-off pressure on AI semis; move likely driven by sector read-across rather than NVDA-specific fundamentals.
Nvidia shares fell about 6% in the AI chip selloff, cutting more than $300B from market cap after Broadcom’s weak AI-chip demand read-through.
Elevated volatility and downside bias until AI-chip demand expectations stabilize.
Background
The PHLX semiconductor index hit a record high on Wednesday, then reversed sharply over Thursday-Friday after Broadcom’s quarterly report signaled weaker-than-expected custom AI chip demand.
Why it matters
Investors are repricing AI-chip demand expectations and de-risking high-multiple semis; the magnitude of declines suggests crowded positioning and sensitivity to rate expectations.
Market relevance
This is a sector read-across event: Broadcom’s weaker AI-chip demand report is driving a broad selloff in AI chip leaders and memory.
Market effects
Broadcom’s weaker custom AI chip demand is being treated as a sector-wide demand reset, pressuring AI-exposed semis (logic and memory).
U.S. equities broadly spooked by higher-rate worries after stronger-than-expected jobs data; S&P 500 down 2.6%.
AI chip demand repricing can spill into global semiconductor supply chains and related risk appetite given the sector’s YTD strength.
Alternative perspectives
The selloff may be an overbought unwind rather than a structural AI demand break, as one strategist suggests the bull market isn’t over.
The article doesn’t separate company-specific fundamentals from macro/rate effects; some declines may reflect positioning and crowded “buy the dip” behavior rather than new demand data for each name.
Key entities
- indexPHLX Semiconductor Index
Down 10.3% on Friday, deepest one-day loss since March 2020; down ~12% over two sessions.
- companyBroadcom
Quarterly report showed custom AI chip demand falling short of lofty expectations; shares fell 7.9% Friday.
- otherSpaceX IPO (valuation context)
Mentioned as part of broader high-valuation tech narrative, not a direct semiconductor catalyst.
