SynopsisThe PHLX's combined loss of 12% 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.US-traded chipmakers plunged ​on Friday, losing about $1.3 trillion ​in market value, with deep losses in AI heavy hitters ​including Nvidia, Micron Technology and Advanced Micro Devices, as Broadcom's weak report earlier this week reverberated across Wall Street.The PHLX chip index slumped 10.3% in its deepest one-day loss since ‌March 2020, ⁠when the ⁠coronavirus pandemic threw global markets into a tailspin.Friday's selloff added to losses on Thursday ​after Broadcom issued a quarterly report that showed demand for its custom AI chips business ​falling short of lofty expectations.The PHLX's combined loss of 12% 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.The chip ​index hit a record high on Wednesday, and even after ⁠Friday's losses it remains up 73% year to ​date.Nvidia, the world's most valuable chipmaker, fell about 6%, cleaving ​more than $300 billion from its market capitalization.Micron Technology tumbled 13%, evaporating about $150 billion in market value. Recent investor darling Marvell Technology gave back 17%, while AMD lost almost 11%."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 fell 2.6%.One of the biggest beneficiaries of the AI race, Broadcom, lost 7.9%, bringing ​its two-day loss to almost 20%."The semiconductor sector was way overbought. That's why we're seeing the sell-off. I don't think it's the end of the (semiconductor) bull market," said Ohsung Kwon, Chief Equity Strategist at Wells Fargo. (Reporting by Noel Randewich in San Francisco; Additional reporting by Saeed Azhar in New York; Editing by Rod Nickel and Rosalba O'Brien) ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now