Chipmakers and memory firms drove a sharp sell‑off on Friday, pulling the S&P 500 toward its first weekly decline since late March. The index slipped 1.3%, while the Nasdaq dropped 2.1%, erasing gains from the AI‑fuelled rally that had lifted tech stocks. Broadcom’s earnings missed the most aggressive forecasts, sending its shares down more than 5% after a 12.5% plunge the day before for safety.

Across the sector, the Philadelphia Semiconductor Index fell over 6%, yet remains 80% above its start‑of‑year level. South Korean giants SK Hynix and Samsung slid 10% and 6% respectively, underscoring the global reach of the correction. Analysts warned that the rally’s narrow base makes earnings surprises, like Broadcom’s, a catalyst for broader market weakness, raising concerns about valuation gaps.

Investors now eye a wave of mega‑IPOs, notably SpaceX, slated to debut next week as the largest offering ever. Market strategists caution that a hawkish Fed response to strong jobs data could amplify volatility, especially as equity gains remain concentrated in AI‑linked tech. The chip sell‑off therefore signals a fragile underpinning for the broader rally in the near term.