Nvidia Loses $2 Trillion in Market Cap in a Day... Semiconductor Stocks Plunge on New York Stock Exchange

Philadelphia Semiconductor Index Plunges 10.3%

On June 5 (local time), approximately $1.3 trillion (about 2,026 trillion won) in market capitalization was wiped out from the New York Stock Exchange in a single day due to a sharp plunge in semiconductor stocks.

According to foreign media reports, the Philadelphia Semiconductor Index, which is composed of 30 major semiconductor stocks listed in the United States, plummeted by 10.3% that day. This decline marks the largest drop since March 2020, when the global financial markets experienced extreme volatility amid the aftermath of COVID-19.

Reuters Yonhap News Agency

Nvidia, a key player in the AI semiconductor market, fell by about 6%, while Micron dropped by 13%. As a result, more than $300 billion was wiped from Nvidia’s market capitalization and about $150 billion from Micron’s. Marvell Technology, which had recently led the market rally, fell by 17%, and AMD dropped by 11%. Broadcom declined by around 8%. Over the course of two days, the cumulative loss approached 20%.

This sharp fall in semiconductor stocks was triggered by Broadcom’s quarterly earnings announcement. Broadcom’s custom AI chip business demand failed to meet market expectations. Market experts said this sell-off in semiconductor stocks came as investor caution toward overvalued technology stocks increased ahead of SpaceX’s massive initial public offering (IPO) led by Elon Musk.

Additionally, as U.S. employment indicators showed signs of recovery last month, investor sentiment deteriorated rapidly due to heightened expectations that the Federal Reserve might raise interest rates within the year.

However, despite the plunge, the Philadelphia Semiconductor Index has still risen 73% since the beginning of the year, leading some analysts to interpret the day’s sharp decline as a correction following an overheated rally.

This content was produced with the assistance of AI translation services.