Investors rushed to shed tech exposure following warnings that incoming state governors intend to freeze development over heavy electricity and water usage. The resulting downturn severely impacted chipmakers and data centre operators that rely heavily on continuous capacity buildouts. Analysts at UBS estimate that these political pushbacks could derail up to 30% of planned U.S. data centre additions through 2028. This broad retreat signals growing scrutiny of the operational viability and actual financial returns of artificial intelligence hardware.
Key points
Heightened political pushback over utility consumption threatens to disrupt nearly a thir…: Heightened political pushback over utility consumption threatens to disrupt nearly a third of projected 2028 data centre capacity.
Market confidence in the high capital expenditure required for artificial intelligence in…: Market confidence in the high capital expenditure required for artificial intelligence infrastructure is facing unprecedented investor doubt.
Contagion from the tech sell-off quickly expanded beyond pure semiconductor firms to impa…: Contagion from the tech sell-off quickly expanded beyond pure semiconductor firms to impact power generation and infrastructure companies.
Sources checked by our analysis pipeline: 1
The Nasdaq 100 index erased $2.5 trillion in market value in a single day as Nvidia and other major technology companies suffered steep losses amid growing fears over the future of artificial intelligence (AI) infrastructure spending in the US. According to a Reuters report, the tech-heavy Nasdaq Composite plunged 5.5% on November 5, marking its biggest one-day drop since the market sell-off triggered by US President Donald Trump’s “Liberation Day” tariffs in April 2025. The sharp decline came after Democrats scored major victories in the US midterm elections, raising concerns that increased political scrutiny and opposition to data centre construction could slow the expansion of AI infrastructure.
Nvidia, AMD and semiconductor stocks suffer major losses
Nvidia shares dropped 9% during Thursday’s trading session, while Advanced Micro Devices (AMD) plunged 17%. The Philadelphia Semiconductor Index, which tracks major chipmakers, fell 12% and touched its lowest level in more than six months.
Several companies directly exposed to AI data centre construction also recorded steep losses. CoreWeave shares fell 10%, while Nebius dropped 15%. Both companies have faced investor concerns over their reliance…
Shares of the biotechnology company are facing negative momentum during active trading as market participants evaluate current movements. The equity experienced an immediate downward trajectory, marking a retreat from its previous price levels. Observers are tracking the shift closely as the company navigates this downward pressure in the financial market.
Market participants are observing downward movement in shares of the financial technology company during the current session. The sudden retreat has drawn attention across the exchange as investors track the performance of the payments firm. Further information regarding the precise causes behind the decline is still emerging.
Shares of the precision oncology company are facing downward pressure as investors react to ongoing trading momentum. The movement reflects an immediate shift in market sentiment surrounding the equity during the current session. Stakeholders are closely monitoring the decline to determine whether broader sector trends or internal factors are driving the sell-off.