Applied Materials, Lam Research, Nova Tumble on AI Spending Reset and Rate Hike Fears

Shares of Applied Materials (AMAT), Lam Research (LRCX), and Nova (NVMI) declined sharply on June 5, 2026, as a broad semiconductor selloff was triggered by Broadcom’s disappointing guidance and an unexpectedly strong U.S. jobs report. The combined news erased expectations for near-term AI chip spending growth and interest rate cuts, sparking a sector-wide retreat. South Korea’s Kospi index fell 5.5%, with Samsung down 6.4% and SK Hynix nearly 10%. In Europe, ASML lost 3.8% and Infineon dropped more than 6%. The Labor Department’s report of 172,000 new jobs in May pushed CME FedWatch to price in a possible rate hike by year-end, adding pressure to richly valued semiconductor stocks. Lam Research, which had risen 68.9% year-to-date, pulled back but remained near its 52-week high. The stock had gained 4.8% three days earlier after Nvidia’s CEO outlined extended AI chip demand at Computex.