Micron Technology Sheds 11%, $127 Billion Lost as Chip Index Tumbles 8.5%
MU•The PHLX chip index slid almost 8.5% on June 5, erasing over $1 trillion in combined market value across major chipmakers including a 6% drop in NVIDIA. Micron Technology plunged 11%, shedding $127 billion in valuation as investor concerns over AI chip demand and rising interest rates intensified.
1. Chip Sector Plunges
The PHLX chip index slumped almost 8.5% in one session, wiping out over $1 trillion in combined market capitalization among leading semiconductor companies as traders reacted to signs of cooling AI chip demand and broader market volatility.
2. Nvidia and Broadcom Deep Losses
NVIDIA shares fell about 6%, cutting more than $300 billion from its market value, while Broadcom declined 7.5% on the day and 19% over two sessions after its AI chip sales fell short of expectations.
3. Micron’s Sharp Selloff
Micron Technology tumbled 11%, erasing $127 billion in valuation as investors grew wary of memory chip demand driven by reports of slowing AI hardware purchases.
4. Interest Rates and Market Sentiment
Stronger-than-expected jobs data raised concerns about higher interest rates, contributing to a 2.3% drop in the S&P 500 and intensifying the selloff in high-flying technology and semiconductor stocks.
