A sharp reversal across global equity markets has erased trillions of dollars in market value from major technology companies, as US election results and growing concerns over AI spending unsettled investors.
The Nasdaq Composite fell more than 5.5% on Thursday, wiping out an estimated $2.5 trillion in market value. The S&P 500 declined 4.4%, while the Dow Jones Industrial Average dropped 3.4%. The losses followed Democratic victories in US midterm elections, with several candidates campaigning for tighter controls on AI development and data centre expansion.
Asian chipmakers face heavy losses
Technology stocks across Asia also came under pressure on Friday. Japan’s Nikkei 225 fell 6% in early trading, with Kioxia shares dropping 12.6% and Tokyo Electron losing 9.5%.
South Korea’s SK Hynix declined 11.5%, while Samsung fell nearly 10%. The Kospi plunged more than 8.5%, triggering a temporary trading halt, known as a circuit breaker. Taiwan’s Taiex dropped 8.3%, while TSMC shares fell nearly 8.5%.
In Europe, Infineon lost more than 8.5% and ASML declined 6.5%. In the US, Nvidia fell over 9%, losing more than $400 billion in market value. AMD and Micron dropped over 17% each, Intel declined 10.3%, and SanDisk plunged more than 22%. The Philadelphia Semiconductor Index fell over 12%.
Tesla and SpaceX shares also dropped 11% and 8%, respectively, reducing their combined market value by more than $300 billion. The so-called Magnificent Seven technology companies lost approximately $1 trillion in a single trading session.
Data centre opposition adds to AI concerns
Democratic candidates across the US campaigned for restrictions on data centres and AI infrastructure. Texas governor-elect Gina Hinojosa has pledged a moratorium on new data centre construction. Democratic victories in the Senate and House have also raised expectations of stronger oversight during President Donald Trump’s remaining term.
Trump blamed political opponents for the market decline, saying: “The Stock Market suffered one of the Worst Days in History based on the results of the Election,” and adding, “Remember, it wasn’t Republicans, it was Dumocrats.”
Senator Bernie Sanders called for a national pause on data centre development, stating: “Americans don’t want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future. NATIONAL DATA CENTER MORATORIUM NOW,”
Market analysts said concerns over AI infrastructure spending and the possibility of slower data centre construction were adding to fears of an investment bubble.
OpenAI President Greg Brockman acknowledged the need for stronger community engagement, saying companies cannot simply promise benefits online but must work directly with local residents. Meta President Dina Powell McCormick also said the industry needed to strengthen its efforts to explain AI’s benefits.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.