Chip stocks turned a rough session on Friday into a rout, with the semiconductor complex suffering its worst drop since April 2025, erasing more than $1 trillion in market value as the AI trade buckled.
The damage was heavy, but it was not evenly distributed.
A Yahoo Finance screen of semiconductor stocks shows the group wiping out about $1.4 trillion in market value Friday, with the 10 biggest decliners accounting for $1.1 trillion of that hit.
Nvidia (NVDA) alone is erased nearly $330 billion in market value. Taiwan Semiconductor Manufacturing (TSM), Broadcom (AVGO), and Micron (MU) each lost more than $100 billion in value.
The Philadelphia Semiconductor Index (^SOX) sank 10.3%, and the iShares Semiconductor ETF (SOXX) tracked a similar drop. Both suffered their worst day since the aftermath of Liberation Day in April 2025, as did the broader State Street Technology Select Sector SPDR ETF (XLK).
Meanwhile, the S&P 500 (^GSPC) snapped its nine-week winning streak and fell 2.6%. But beneath the index-level drop, market internals were not flashing panic. The index had only slightly more decliners than advancers, with 238 stocks higher and 264 lower.
The Nasdaq 100 (^NDX), in contrast, fell 4.8%, with 33 advancers against 68 decliners — showing that the carnage was more focused in the tech-heavy index.
That split says this was not a full-market collapse. It was a concentrated unwind in the market’s hottest trade.
The pressure showed up overseas too. The iShares MSCI South Korea ETF (EWY) fell 14.1%, its worst day since March 2020. Samsung Electronics (005930.KS) and SK Hynix (000660.KS) dominate the fund, making EWY a live read on stress in the memory and AI supply chain.
The market is not in panic mode. But if semis do not stabilize early next week, the selling could start to bleed into the broader tape.
