June 5 (Reuters) - U.S.-traded chipmakers plunged on Friday, losing over $1 trillion in market value, with deep losses in AI heavy hitters including Nvidia ( NVDA ), Micron Technology ( MU ) and Advanced Micro Devices ( AMD ), as Broadcom's ( AVGO ) weak report earlier this week reverberated across Wall Street.

The PHLX chip index slumped almost 8.5% in afternoon trading, putting it on track for its deepest one-day loss since Wall Street's "Liberation Day" tariff selloff in April 2025.

Friday's selloff added to losses on Thursday after Broadcom ( AVGO ) gave a quarterly report that showed demand for its ‌custom AI chips business falling short of lofty expectations. 

The PHLX's combined loss of more than 10% over two sessions shows investors are becoming more concerned about pricey, high-flying tech stocks just as Elon Musk prepares a blockbuster initial public offering next week for SpaceX at an exceedingly high $1.75 trillion valuation.

Even after Friday's losses, the PHLX chip index remains up 75% year to date.

Nvidia ( NVDA ), the world's most valuable chipmaker, fell about 6%, cleaving more than $300 billion from its market capitalization.

Micron Technology ( MU ) tumbled 11%, evaporating $127 billion in market value. Recent investor darling Marvell Technology ( MRVL ) gave back 12%, while AMD lost 10.5%.

"You've had a lot of people here that were just blindly buying the dip," said Dennis Dick, a proprietary trader at ​Triple D Trading. "Blindly buying the dip had been winning you money, but that ended today."

Worries about higher interest rates also spooked investors across the U.S. stock market following stronger-than-expected jobs data, and the S&P 500 was down 2.3%. 

One of the ​biggest beneficiaries of the ⁠AI race, Broadcom ( AVGO ), was last down 7.5%, bringing its two-day loss to 19%.