Key facts
- Nasdaq-100 index fell over 3% on Friday.
- U.S.-traded chipmakers lost over $1 trillion in market value.
- Nvidia, Micron Technology, and Advanced Micro Devices were among the hardest-hit chipmakers.
- Broadcom issued a weak report on its custom AI chips business.
- Concerns about high-flying tech stocks and rising interest rates contributed to the selloff.
The Nasdaq-100 index fell over 3% on Friday, with U.S.-traded chipmakers collectively losing more than $1 trillion in market value. Nvidia, Micron Technology, and Advanced Micro Devices were among the hardest hit. The selloff was exacerbated by a weak report from Broadcom regarding its custom AI chips business, which fell short of expectations. This decline, coupled with concerns about high-flying tech stocks and rising interest rates following stronger-than-expected jobs data, led the PHLX chip index to slump nearly 8.5%. Nvidia's market capitalization decreased by over $300 billion, while Micron Technology lost $127 billion. Broadcom itself was down 7.5%, extending its two-day loss to 19%. The S&P 500 also declined by 2.3% amid the broad market selloff.