Semiconductor Stocks Plunge, Erasing $1.2 Trillion in Worst Rout Since April 2025; NVDA, TSM, AVGO Lead Declines

Semiconductor stocks cratered on Friday, June 5, 2026, wiping out roughly $1.2 trillion in market value as the AI trade buckled in the sector's sharpest single-day loss since the aftermath of Liberation Day in April 2025. The Philadelphia Semiconductor Index slumped more than 8%, with Nvidia (NVDA) alone erasing nearly $280 billion. Taiwan Semiconductor Manufacturing (TSM), Broadcom (AVGO), and Micron (MU) each shed over $100 billion in market capitalization. The iShares Semiconductor ETF (SOXX) tracked a similar drop. While the S&P 500 fell nearly 2%, snapping a nine-week winning streak, market internals showed more advancers than decliners—signaling the rout was concentrated in the overheated chip trade rather than a broad market collapse. The sell-off extended overseas, with the iShares MSCI South Korea ETF (EWY) down over 11%, dragged by Samsung Electronics and SK Hynix, exposing stress in the memory and AI supply chain. Analysts warned that if the semiconductor sector fails to stabilize by Monday, June 8, 2026, the selling could begin to bleed into the broader tape.