Investors Dump Chip Stocks, US Semiconductor Companies Plunge
On June 5, 2024, major US stock indexes tumbled as investors sold off chip stocks, with the Nasdaq posting its biggest single-day drop since last April. Analysts cited profit-taking in AI stocks, potential capital rotation ahead of SpaceX's IPO next week, and strong US jobs data fueling rate hike expectations as factors accelerating the decline. Micron, Intel, and AMD were among the semiconductor giants that saw sharp drops.
📋 Article Processing Timeline
- 📰 Published: June 6, 2026 at 09:15
- 🔍 Collected: June 6, 2026 at 09:30 (15 min after Published)
- 🤖 AI Analyzed: June 7, 2026 at 00:34 (15h 3m after Collected)
(CNA correspondent Liao Hanyuan, New York, 5th) Investors sold off chip stocks today, causing major US stock indexes to fall sharply. Semiconductor makers Micron, Intel, and AMD all suffered significant declines. Analysts believe the market is experiencing profit-taking sentiment in artificial intelligence stocks, and SpaceX's IPO next week is a possible factor for capital rotation.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all fell sharply on the 5th, by 1.35%, 2.64%, and 4.18% respectively. Investors sold chip stocks, and the tech-heavy Nasdaq posted its biggest single-day drop since the tariff turmoil in April of last year. The Philadelphia Semiconductor Index plummeted 10.26%.
The S&P 500 ended its nine-week winning streak of weekly closing gains, falling 2.62% for the week.
The market is questioning whether chip manufacturers, whose stock prices have surged recently due to AI demand and massive investments, can generate actual revenue. Growth in AI market demand has not been as rapid as expected. Memory and advanced chip giants Micron, Intel, and AMD plunged 13.25%, 11.28%, and 10.86%, respectively.
Marvell Technology, which had surged earlier following a boost from Nvidia CEO Jensen Huang, plummeted 16.74%. Broadcom and Nvidia fell 7.92% and 6.19%, respectively.
The US government's report of a surge of 172,000 in non-farm payrolls for May, far exceeding market expectations, indicates a strong US economy and job market. Although the technology and service sectors are undergoing massive layoffs due to AI, the overall employment environment has improved significantly, potentially raising inflation. Market expectations for a Federal Reserve (Fed) rate hike have also increased, with monetary policy tending towards tightening, accelerating today's stock market decline.
Mark Hackett, Chief of Market Strategy at Nationwide, told CNBC, "Investors' fingers are hovering over the sell button on their computers, thinking they don't necessarily have to leave, but holding (the sharply risen) semiconductor stocks of the past two months is extremely abnormal from a long-term perspective. It's time to take profits."
Additionally, space technology company SpaceX is set to go public via an IPO next week. The market expects funds may flow to this promising new stock, which is also a factor in the decline of chip stocks and Bitcoin.
Hackett believes, "Investors probably won't sell Procter & Gamble to buy SpaceX. What they will sell are well-known AI and semiconductor companies or general tech stocks. When a big rock starts rolling downhill, like yesterday's market situation, chaotic selling occurs." (Editor: Tang Shengyang) 1150606
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all fell sharply on the 5th, by 1.35%, 2.64%, and 4.18% respectively. Investors sold chip stocks, and the tech-heavy Nasdaq posted its biggest single-day drop since the tariff turmoil in April of last year. The Philadelphia Semiconductor Index plummeted 10.26%.
The S&P 500 ended its nine-week winning streak of weekly closing gains, falling 2.62% for the week.
The market is questioning whether chip manufacturers, whose stock prices have surged recently due to AI demand and massive investments, can generate actual revenue. Growth in AI market demand has not been as rapid as expected. Memory and advanced chip giants Micron, Intel, and AMD plunged 13.25%, 11.28%, and 10.86%, respectively.
Marvell Technology, which had surged earlier following a boost from Nvidia CEO Jensen Huang, plummeted 16.74%. Broadcom and Nvidia fell 7.92% and 6.19%, respectively.
The US government's report of a surge of 172,000 in non-farm payrolls for May, far exceeding market expectations, indicates a strong US economy and job market. Although the technology and service sectors are undergoing massive layoffs due to AI, the overall employment environment has improved significantly, potentially raising inflation. Market expectations for a Federal Reserve (Fed) rate hike have also increased, with monetary policy tending towards tightening, accelerating today's stock market decline.
Mark Hackett, Chief of Market Strategy at Nationwide, told CNBC, "Investors' fingers are hovering over the sell button on their computers, thinking they don't necessarily have to leave, but holding (the sharply risen) semiconductor stocks of the past two months is extremely abnormal from a long-term perspective. It's time to take profits."
Additionally, space technology company SpaceX is set to go public via an IPO next week. The market expects funds may flow to this promising new stock, which is also a factor in the decline of chip stocks and Bitcoin.
Hackett believes, "Investors probably won't sell Procter & Gamble to buy SpaceX. What they will sell are well-known AI and semiconductor companies or general tech stocks. When a big rock starts rolling downhill, like yesterday's market situation, chaotic selling occurs." (Editor: Tang Shengyang) 1150606
FAQ
What is the main content of this article?
It reports on a sharp decline in US stock markets on June 5, 2024, led by a sell-off in semiconductor stocks.
What are the main reasons for the stock price decline?
Profit-taking in AI stocks, capital rotation ahead of SpaceX's IPO, and rate hike expectations following strong US employment data.
Which semiconductor company saw the biggest drop?
Marvell Technology, which fell 16.74%, recorded the largest decline.