On May 13, chip stocks listed on the U.S. stock market encountered one of their most challenging trading sessions of the year, with some stocks that had previously demonstrated robust performance experiencing notable declines. Broadcom, Intel, and Micron Technology ranked among the top five decliners in both the S&P 500 and Nasdaq 100 indices. The Philadelphia Semiconductor Index, which had soared by over 60% since the beginning of the year, at one juncture, plummeted by 6.8% during intraday trading, marking its most significant intraday drop in more than a year, before eventually closing down 3%. Nearly all constituent stocks ended the session lower, with Qualcomm leading the losses at 11.4%. The only exception was Nvidia, although its performance since the start of the year still trails behind the broader sector.

Murphy, co-head of derivatives strategy at Susquehanna International, remarked that the historic rally in chipmaker stocks could not persist indefinitely and that this sell-off was long overdue following the remarkable surge. However, given the persistent "fear of missing out" (FOMO) sentiment prevalent in the market, this downturn may prove to be short-lived.