Power Integrations (POWI), Microchip Technology (MCHP) Fall as Global Chip Selloff Sweeps Sector

A global semiconductor selloff on June 6, 2026, drove Power Integrations (POWI) and Microchip Technology (MCHP) sharply lower, after Broadcom’s earnings miss and a strong U.S. jobs report wiped out growth catalysts and rate-cut expectations. The rout spread across continents: South Korea’s Kospi slumped 5.5% as Samsung fell 6.4% and SK Hynix nearly 10%; in Europe, ASML lost 3.8% and Infineon dropped over 6%. The Labor Department reported 172,000 payroll gains in May, erasing near-term rate-cut hopes and boosting the odds of a rate hike by year-end, according to the CME FedWatch Tool. Broadcom’s guidance miss reset forecasts for hyperscaler AI chip spending, removing the sector’s most visible growth driver. Highly valued semiconductor shares, built on aggressive multi-year earnings assumptions, are acutely sensitive to such moves in discount rates. Power Integrations (POWI) — which has recorded 27 moves exceeding 5% over the past year — dropped in sympathy but remains up 113% year-to-date near its 52-week high of $87.07 set in May 2026. Microchip Technology (MCHP) also declined alongside the broader sector.