“Jensen Huang’s stock picks” are a complete failure—everything is wiped out! The Nasdaq 100 Semiconductor Index falls 10%, and chip stocks erase $1.3 trillion.

U.S. stocks saw the most brutal sell-off of the year on Friday. The Nasdaq plunged 4.18%, and the Philadelphia Semiconductor Index tumbled 10.26% in a single day—its largest drop since March 2020 during the COVID-19 pandemic. Chip stocks’ total market value evaporated by approximately $1.3 trillion. Continued fallout from Broadcom’s AI chip guidance falling short of Wall Street’s high expectations is still building, on top of May’s non-farm employment surge to 172,000—far above expectations—and the probability of Federal Reserve rate hikes soaring past 60%.
(Background: At Computex, Jensen Huang pitched a “trillion-dollar company” for Marvell—MRVL jumped 23% pre-market to hit a record high of $269)
(Additional context: Jensen Huang’s stock holdings list: $12 billion buying six stocks, INTC quadrupling to lead, and is Marvell the “next trillion-dollar company”?)

Table of Contents

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• All three major indices collapse, Semiconductors hit four-year worst
• “Jensen Huang’s selected stocks” fail across the board
• Broadcom guidance disappoints, compounded by non-farm beating expectations

Key Highlights

• The Philadelphia Semiconductor Index plunges 10.26% in one day, the largest decline since March 2020, and chip stocks’ market value wipes out $1.3 trillion
• “Jensen Huang’s selected stocks” collapse across the board: Marvell down 16.74%, only three days after hitting a record high of $269
• May non-farm employment jumps by 172,000 far above expectations of 85,000, and the probability of Fed rate hikes by year-end soars past 60%

Three days ago, at Computex, Jensen Huang personally sealed Marvell as the “next trillion-dollar company,” and MRVL surged 23% pre-market to reach a historical high of $269. By Friday’s close, the stock fell 16.74%, the worst among the Philadelphia Semiconductor Index constituents. From an AI chip celebration to a massacre—only 72 hours apart.

All three major indices collapse, Semiconductors hit four-year worst

U.S. stocks closed lower across the board on Friday:

• Dow Jones fell 1.35%, to 50,866 points
• S&P 500 fell 2.64%, to 7,383 points
• Nasdaq fell 4.18%, to 25,709 points, losing more than 1,100 points in a single day
• Philadelphia Semiconductor Index fell 10.26%, to 12,220 points, the largest single-day drop since the COVID-19 pandemic in March 2020

The semiconductor index slid a combined 12% over Thursday and Friday. The irony is that it had just refreshed its all-time high on Wednesday, and even after Friday’s slaughter, it is still up 73% year-to-date.

“Jensen Huang’s selected stocks” fail across the board

NVIDIA’s basket of stocks that it announced investment or cooperation plans with at Computex last month—what the market jokingly calls “Jensen Huang’s stock picks”—saw none spared on Friday:

• Marvell (MRVL) down 16.74% (three days ago +23%, setting an ATH)
• Nokia (NOK) down 13.48%
• Nebius (NBIS) down 12.27%
• IREN (IREN) down 12.14%
• Intel (INTC) down 11.28%
• Coherent (COHR) down 10.64%
• Corning (GLW) down 10.18%
• Lumentum (LITE) down 8.62%
• CoreWeave (CRWV) down 7.07%

Other major tech bellwethers also dropped sharply in parallel:

• Micron Technology down 13.21%, with market cap wiping out approximately $150 billion
• ARM down 12.84%
• SanDisk down 11.39%
• AMD down nearly 11%
• Broadcom down 7.92%, nearly 20% over two days
• TSMC down 6.68%
• NVIDIA down 6.20%, with market cap wiping out more than $300 billion

NVIDIA’s one-day wipeout of more than $300 billion is equivalent to AMD’s market cap. When added up, U.S.-listed chipmakers’ total market value evaporated by about $1.3 trillion on Friday.

Broadcom guidance disappoints, compounded by non-farm beating expectations

The first shot came from Broadcom. This week’s quarterly earnings release showed:

• Third-quarter AI semiconductor revenue guidance of $16 billion, up more than 200% year over year, but below analysts’ expectations
• Full-year AI chip sales guidance of $56 billion, below Wall Street consensus of $57.6 billion
• The stock fell nearly 20% over two days

Analysts noted that Broadcom’s earnings report itself wasn’t weak, but market expectations had already gotten extremely elevated. Any figure below “blowout-level, far above expectations” would be enough to trigger profit-taking.

The second shot came from the employment market. On Friday, the U.S. Bureau of Labor Statistics released May’s non-farm data:

• Added employment of 172,000, far above the market expectation of 85,000
• Unemployment rate unchanged at 4.3%
• CME FedWatch tool shows the probability of a rate hike before year-end surging from 48% to above 60%
• The president of the Cleveland Fed said that “rate hikes could become appropriate very soon”

Triple D Trading trader Dennis Dick said that previously many investors had been “blindly buying the dip.” That strategy had worked until now—“but it ended on Friday.”

Wells Fargo’s chief equity strategist Ohsung Kwon believes the semiconductor sector had already been severely overbought, and that the sell-off is profit-taking, which does not mean the semiconductor bull market has ended.

The above is not investment advice.

Frequently Asked Questions

Why did the Philadelphia Semiconductor Index plunge more than 10% in a single day?

The main reason is that Broadcom’s AI chip business revenue guidance of $56 billion came in below Wall Street consensus of $57.6 billion, triggering concerns that AI investment may be overheated. At the same time, May’s non-farm employment of 172,000 was far above expectations, pushing the probability of Fed rate hikes to 60%. The double negatives hit the semiconductor sector.

What are “Jensen Huang’s selected stocks”?

It refers to a basket of stocks that NVIDIA announced it would invest in or partner with during Computex 2026, including Marvell, Nokia, Nebius, IREN, Intel, Coherent, Corning, Lumentum, CoreWeave, and others. The market has nicknamed these “Jensen Huang’s stock-pick list.”