Major US technology companies lost more than $1 trillion in combined market value on Thursday, November 5, as investors sold artificial intelligence-related stocks amid concerns that political changes could slow the expansion of data centres.
Nvidia led the decline among the largest technology companies, with its shares falling 9.3 per cent to $181.60, wiping out its gains for 2026. Tesla dropped 10.8 per cent, while chipmaker Advanced Micro Devices (AMD) plunged 17.3 per cent.
The sell-off followed sweeping Democratic victories in the US midterm elections, which raised concerns among investors that the party's increased political influence could translate into tighter scrutiny of artificial intelligence infrastructure projects.
Investors are particularly worried about possible restrictions on new data centre developments, including local opposition, environmental requirements and higher costs associated with electricity and water consumption.
Data centres are central to the expansion of artificial intelligence because they provide the computing power needed to train and operate advanced AI systems. Technology companies have committed hundreds of billions of dollars to expanding this infrastructure, creating significant demand for processors, networking equipment and cloud computing services.
However, the prospect of tighter regulations has raised questions about whether planned projects will proceed on schedule and whether the enormous investments will generate sufficient returns.
The Nasdaq Composite fell 5.52 per cent to 24,315 points, entering correction territory after declining more than 10 per cent from its October record. The technology-heavy index suffered its steepest single-day decline since April 2025.
The Nasdaq 100, which tracks major non-financial companies listed on the exchange, dropped approximately 6.4 per cent.
The broader market also suffered heavy losses. The S&P 500 declined 4.36 per cent, while the Dow Jones Industrial Average fell 3.44 per cent, reflecting a widespread retreat from riskier assets.
Beyond Nvidia and Tesla, semiconductor companies bore much of the pressure. AMD fell 17.3 per cent, while Micron Technology declined approximately 17.5 per cent and Broadcom lost 10.4 per cent.
The losses extended to companies providing cloud computing and data centre infrastructure, including CoreWeave and Nebius, whose shares fell sharply as investors reassessed the outlook for AI-related spending.
The sell-off also reflects growing questions about the profitability of the artificial intelligence boom. Although demand for computing capacity remains strong, investors are increasingly examining the costs of building data centres, financing expansion and converting AI investments into sustainable earnings.
For Nvidia, the decline is particularly significant because the company has been one of the biggest beneficiaries of the global AI investment surge. Its chips are widely used in data centres, making its financial performance closely linked to technology companies' spending plans.
The market reaction highlights a growing distinction between confidence in artificial intelligence as a technology and confidence that every company investing in its infrastructure will deliver the expected financial returns.
