The Philadelphia Semiconductor Index plunged 10.3% in its largest single-day drop since March 2020. U.S.-listed chipmakers lost approximately $1.3 trillion in combined market capitalization.
NVIDIA shares fell 6% during the broad-based downturn. Micron Technology dropped 13%, while AMD declined nearly 11%. Marvell Technology plummeted 17%.
Stronger-than-expected U.S. employment data released Friday triggered the sell-off. These figures stoked investor fears that the Federal Reserve might raise interest rates.
Lingering disappointment from Broadcom’s quarterly report also weighed on sentiment. The company failed to raise its AI chip demand forecast in the recent filing.