The US Stock Market Chip Stocks Saw a Single-Day Market Cap Evaporation of $1.3 Trillion, Philadelphia Semiconductor Index Records Largest Single-Day Decline Since 2020

BlockBeats News, June 6th. The US chip stocks plummeted on Friday, with the total market value of US-listed chip manufacturers evaporating by about $1.3 trillion. Key AI-related stocks such as NVIDIA, Micron Technology, and AMD all saw significant declines. Earlier, Broadcom's quarterly report released this week indicated that its custom AI chip business demand did not meet the market's high expectations, and the corresponding impact continued to ferment on Wall Street.

The Philadelphia Semiconductor Index fell by 10.3% on Friday, marking the largest single-day drop since the global market turmoil caused by the COVID-19 pandemic in March 2020. The index recorded a cumulative 12% decline over Thursday and Friday. However, before this round of decline, the Philadelphia Semiconductor Index had just hit a historical high on Wednesday. Even after Friday's sell-off, it is still up 73% year-to-date.

On the individual stock front, NVIDIA, the world's highest-valued chipmaker, dropped by approximately 6%, with a market value evaporation of over $300 billion; Micron Technology fell by 13%, with a market value evaporation of about $150 billion; Marvell Technology fell by 17%, and AMD dropped by nearly 11%. Broadcom fell by 7.9% on Friday, with a two-day cumulative decline of close to 20%.

Dennis Dick, a trader at Triple D Trading, stated that many investors had been "blindly buying the dips" before, and this strategy had been effective. However, it came to an end on Friday. In addition, stronger-than-expected US employment data raised concerns about interest rate hikes, dragging down overall risk appetite in the US stock market, with the S&P 500 index falling by 2.6%. Ohsung Kwon, Chief Equity Strategist at Wells Fargo, said that the semiconductor sector had been significantly overbought previously, leading to the sell-off. Nevertheless, he believed that this did not mean the end of the semiconductor bull market.