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 capitalisation.

Micron Technology tumbled 13%, evaporating about $150 billion in market value. Recent investor favourite Marvell Technology gave back 17%, while AMD lost almost 11%.