The Philadelphia Semiconductor Index plummeted by 10% on June 5, 2026, resulting in a $1.4 trillion market value loss for AI sector stocks in a single day. Nvidia's market capitalization dropped by over $300 billion, while Broadcom and Marvell crashed by 12.6% and 17%, respectively.
Microsoft and Meta entered bear market territory with declines of more than 20% from their peaks. The Nasdaq ended the week in red, erasing over $1 trillion from the Nasdaq 100 alone.
Crypto, on the other hand, absorbed this rotation, with approximately $2.87 billion flowing into AI-focused tokens after the Anthropic model shutdown on June 14 due to a U.S. government export-control order.