Nvidia Falls 6.2% Below $5 Trillion Cap as Semis Slide Over 10%

NVDA•2026-06-05

Nvidia shares plunged 6.2% on Friday, sliding below the $5 trillion market cap mark as the PHLX Semiconductor Sector index dropped over 10% following a stronger-than-expected May jobs report that spiked Treasury yields. Nvidia also committed $2 billion to expand Lumentum’s silicon photonics capacity via a North Carolina facility ramping by mid-2028.

1. Sector Sell-Off and Jobs Data

A stronger-than-expected May jobs report added 172,000 positions, triggering a spike in Treasury yields that increased borrowing costs for tech firms and drove the PHLX Semiconductor Sector index down over 10%.

2. Nvidia's Market Cap Decline

Shares of Nvidia fell 6.2% on Friday, slipping below the $5 trillion market capitalization threshold for the first time since early in the year and marking the Nasdaq’s worst session in 14 months.

3. Strategic Photonics Investment

Nvidia agreed to invest $2 billion in Lumentum’s new North Carolina silicon photonics facility, targeting a mid-2028 production ramp to alleviate next-generation AI infrastructure bottlenecks.