AI and semiconductor stocks plunge after US midterm election
US AI, semiconductor and data-center stocks sold off sharply on November 5, 2026, reversing gains from the day after the midterm election. The Nasdaq Composite fell 5.5% and the Philadelphia Semiconductor Index about 12%. Nvidia dropped roughly 9%, while AMD and Micron fell more than 17%. Investors weighed tighter scrutiny of data-center permits and resource use, higher financing costs and uncertain returns on AI infrastructure spending. Cited analysts said the decline did not establish that the AI bubble had burst or that demand had entered a systemic decline.
The selloff shows investors reassessing the policy, financing and return risks behind AI infrastructure. Long-term contracts, permits, financing costs and cash flow are becoming more important pricing considerations than expansion alone.
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