Major tech stocks plunge as US midterms add to fears of AI slowdown

Here is the latest breaking news from around the world: Major tech stocks plunge as US midterms add to fears of AI slowdownImage source, Bloomberg via Getty ImagesByRachel ClunBusiness reporter, Reporting fromNew YorkPublished5 November 2026Updated 9 minutes agoHundreds of billions of dollars in market value has been wiped from major tech firms in a stock market rout after the US midterm elections sparked concerns of a slowdown in AI development. Shares in firms across the tech and artificial intelligence sectors plummeted following Democratic wins after election campaigns run on slowing AI. The tech-heavy Nasdaq composite stock index closed down by more than 5.

5% to lose an estimated $2. 9tn) in market capitalisation, according to Dow Jones data, while other key US stock indexes also saw big losses in their worst days since 2025. The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off.

The Details

Democrats in races across the US campaigned to slow the onslaught of data centres and AI, and there were dozens of measures on ballots around the country aimed at restricting the development of the hubs crucial for powering the technology. They won both the US Senate and House of Representatives in Tuesday's midterms, taking control of Congress for the rest of US President Donald Trump's presidency. Texas' Democratic governor-elect Gina Hinojosa campaigned heavily against data centres, pledging a moratorium on new construction in the sector.

In a social media post, Trump blamed the slide on his political opponents. "The Stock Market suffered one of the Worst Days in History based on the results of the Election," he said. "Remember, it wasn't Republicans, it was Dumocrats.

Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN! "Some Democrats have argued that AI has grown too big without any safeguards or oversight and have promised, with their new power in Congress, to change that.

What Experts Say

"Americans don't want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity's future. NATIONAL DATA CENTER MORATORIUM NOW," Democrat Senator Bernie Sanders said in a post on X on Thursday. Shares in companies heavily exposed to AI data centres, including crucial chipmakers and semiconductor manufacturers, fell sharply on Thursday, highlighting investor concerns that had already been growing.

Nvidia shares slid more than 9%, knocking more than $400bn off the firm's market value. Other chipmakers also suffered, with AMD and Micron both dropping by more than 17%. Intel shares also dropped, down 10.

3%, while memory card maker SanDisk plunged more than 22%. The Philadelphia Semiconductor Index, which tracks the performance of 30 of the largest companies involved in semiconductor production, fell by more than 12%. Shares in Elon Musk's companies SpaceX and Tesla also plunged, falling 8% and nearly 11% respectively and shaving more than $300bn off the firms' market value on Thursday.

The development has drawn wide international attention, with diplomatic circles watching closely.