Nasdaq sheds $2.5 trillion as AI stocks tumble after midterms
What's next: Traders are weighing whether fears of slower data center buildouts will trigger more selling or a rebound in beaten-down tech names.
The Nasdaq’s AI-driven sell-off deepened after the US midterm elections, wiping about $2.5 trillion from the Nasdaq 100 and pushing the Nasdaq Composite into correction territory. Investors dumped chipmakers, neocloud companies and other AI-linked shares on fears that a sweeping Democratic victory could slow data center construction and bring tougher scrutiny to AI infrastructure. The Philadelphia SE Semiconductor index fell 12%, Nvidia lost 9% and Advanced Micro Devices dropped 17%. Even after the rout, some strategists said dip buyers were starting to reappear as positioning had already been cut sharply. Amazon Web Services still posted 39% third-quarter growth, while Microsoft Azure revenue rose nearly 50%, suggesting near-term demand remains strong despite rising policy worries.