Semiconductor stocks lost roughly $1 trillion in market value on Friday, and just five companies did most of the damage.

By 11:35 a.m. ET, 23 of the world's largest chipmakers and equipment suppliers had shed about $1.01 trillion across Wall Street and Asia. Nvidia Corp. (NVDA), Intel Corp. (INTC), Advanced Micro Devices Inc. (AMD), Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and Broadcom Inc. (AVGO) alone accounted for $610 billion of that, or about 60%.

The trigger was Intel. Its shares plunged 28.4% to $65.92 after the chipmaker's fourth-quarter outlook landed well short of expectations. If the drop holds, it would be the stock's steepest one-day fall since July 1974.

Five Chip Stocks Drove 60% of the Selloff

Nvidia led in dollar terms. Its shares fell only 3.6%, yet that move erased about $185 billion, because Nvidia is worth close to $5 trillion.

Intel fell nearly eight times as hard in percentage terms. However, it lost less money, about $138 billion.

TSMC dropped 5.4%, wiping out roughly $108 billion. Broadcom slid 5.5% and AMD sank 9.7%, and each shed about $90 billion.

Elsewhere, SK Hynix Inc. (SKHY) closed 7.1% lower in Seoul, erasing about $64 billion. Micron Technology Inc. (MU), down 5.2%, lost $55 billion.

The iShares Semiconductor ETF (SOXX) tumbled 8%, on track for its worst day since early June. The PHLX Semiconductor Index fell 7.1%, its second drop of more than 6% in just over a week.

Intel's AI Boom Has a Supply Problem

Intel's Data Center and AI division grew revenue 78% to $7.3 billion in the third quarter, its fastest growth in 15 years. However, shortages of wafers and substrates are capping server shipments, and relief is not expected until the second half of 2027.

Meanwhile, the PC business is shrinking. Intel guided fourth-quarter revenue to $15 billion to $16 billion, below the roughly $17.1 billion analysts expected. It also warned the slowdown would last through the first half of 2027.

The culprit is high memory-chip prices. These are the same prices that lifted SK Hynix, Micron and Sandisk Corp. (SNDK) this year. Now they are making PCs too expensive to sell in volume.

"Intel's forward outlook proved to be a perfect storm," Cantor Fitzgerald analyst C.J. Muse said in a note. He called the implied 45% year-over-year collapse in PC units a meaningful surprise. He also cut his price target to $90 from $125 and kept a Neutral rating.

Bank of America Securities analyst Vivek Arya downgraded Intel to Neutral from Buy and cut his price objective to $100 from $145. Arya said strong demand for server processors tied to agentic AI is more than offset by PC and supply headwinds.

Why the Whole Sector Paid

On Thursday, Alphabet Inc. (GOOG) suffered its worst day on record. On Friday, Amazon.com Inc. (AMZN) fell 1.3% after its third-quarter revenue came in slightly below estimates.

As a result, investors are again questioning when the hundreds of billions spent on AI infrastructure will pay off.

Dan Ives of Yorkville Ives said on X that AI's disruption is now visible in tech earnings. He still sees 2027 as the year AI revenue starts to justify the spending.

The Nasdaq 100 fell 2.9%, and the S&P 500 lost 1.4%. The 10-year Treasury yield edged up to 4.95%, while the 30-year yield rose 2 basis points to 5.32%.

Five stocks generated 60% of Friday's chip losses. The same concentration that lifted semiconductor indexes on the way up is now working in reverse.