Global tech stocks plunge as US midterms add to AI slowdown fears — SkimNews
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- Nasdaq Composite fell more than 5.5%, entering correction territory as investor fears over AI spending returns intensified following Democratic gains in the midterms
- Nvidia shares dropped over 9%, wiping more than $400bn from its market value, amid broad sell-offs in semiconductor and AI infrastructure firms
- Democrats won control of both the Senate and House, campaigning on curbing data center growth and imposing greater oversight on AI development
- Greg Brockman said OpenAI was surprised by the backlash against data centers, acknowledging the need for deeper community engagement in infrastructure planning
- TSMC, SK Hynix, and Samsung all saw double-digit percentage declines in market value as Asian tech indexes mirrored Wall Street’s rout
- Bernie Sanders called for a national data center moratorium, reflecting growing Democratic skepticism about unchecked AI expansion and its environmental and societal impacts
Why it matters: The $2.5tn market value loss signals a material shift in investor confidence, triggered by new political constraints on AI infrastructure. With Democrats now able to shape regulatory oversight, companies face delayed approvals, higher costs, and a potential recalibration of AI investment assumptions.
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