Semiconductor stocks kicked off the third quarter with their worst two-day decline in nearly a month, reminding investors that even the hottest trade on Wall Street occasionally needs to cool down.
The Philadelphia Semiconductor Index (SOX) and the iShares Semiconductor ETF (SMH) both posted losses in the range of 7% to 10% during the selloff, erasing roughly $1.3 to $1.4 trillion in market value across the sector.
What triggered the slide
The catalyst traces back to Broadcom’s earnings report, which failed to deliver the upward revision in AI chip guidance that the market had been pricing in.
Broadcom shares cratered between 12% and 19% across multiple sessions in early June 2026.
