Chip slump erases $1.3 trillion in stock market value
US-traded chipmakers plunged on Friday, losing about $1.3 trillion in market value, with deep losses in AI heavy hitters including Nvidia, Micron Technology and Advanced Micro Devices, as Broadcom’s weak report earlier this week reverberated across Wall Street.
The PHLX chip index slumped 10.3% in its deepest one-day loss since March 2020, when the coronavirus pandemic threw global markets into a tailspin.
Friday’s selloff added to losses on Thursday after Broadcom issued a quarterly report that showed demand for its custom AI chips business falling short of lofty expectations.
