Investors rushed out of high-growth technology positions following weak revenue and profit forecasts from Qualcomm and Arm Holdings. Regulatory concerns mounted as Democratic victories in state and congressional races raised the prospect of tighter oversight on power- and water-intensive artificial intelligence data centers. Meanwhile, supply-side friction deepened as Micron Technology paused plans for a Taiwanese plant over ongoing labor disputes. Broader market sentiment deteriorated further as ongoing inflation worries and Middle East conflict pressures compounded valuation doubts.
Key points
Growing political scrutiny from newly elected Democratic officials threatens future artif…: Growing political scrutiny from newly elected Democratic officials threatens future artificial intelligence data center operations and energy consumption.
Persistent geopolitical conflict involving Iran has driven up gasoline prices and contrib…: Persistent geopolitical conflict involving Iran has driven up gasoline prices and contributed to broader macroeconomic pressures on markets.
Heavy corporate capital expenditures on artificial intelligence are facing intense skepti…: Heavy corporate capital expenditures on artificial intelligence are facing intense skepticism as investors demand clear near-term profitability.
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Chip stocks came under renewed selling pressure in Thursday's trade, extending previous day sell-off, with AMD, Arm Holdings, Qualcomm, Micron Technology and Sandisk leading the declines.
The stocks fell between 9% and 17% amid concerns that a Democrat-led Congress could push for tighter restrictions on artificial intelligence (AI) infrastructure and data centre development. Disappointing reactions to earnings and business outlooks from Arm Holdings Plc and Qualcomm Inc. added to the selling pressure.
Qualcomm shares plunged 14% after investors were disappointed with the company's profit forecast, while Arm Holdings (ARM) dropped 15% after the chip designer's revenue guidance failed to impress Wall Street.
Micron Technology was another major laggard, falling 13% after the memory chipmaker paused plans for a Taiwanese plant amid labour disputes. Following a 7% decline in the previous session, Sandisk shares lost another 15% at their intraday low.
SK Hynix's ADRs also fell 14% after shares of the South Korean memory maker tumbled in overseas trading, alongside Samsung Electronics. Nvidia shares extended their decline to 9%, marking their biggest drop since April 2025.
The Wall Street investment firm has elevated over one hundred employees to its most elite operational class while withholding typical diversity metrics. This decision departs from standard transparency practices regarding gender and ethnic representation across corporate leadership. The absence of this background information obscures the firm's ongoing progression toward workforce inclusion goals.
A sharp retreat across the technology sector on Thursday hit energy infrastructure plays as market sentiment turned risk-averse. Investors are growing increasingly apprehensive that data-center expansion projects could stall following the recent U.S. midterm elections. The resulting pullbacks signal mounting sensitivity surrounding the pace and delivery of key digital buildouts.
Democratic midterm election victories sparked widespread investor concern after voters nationwide approved extensive local curbs on technology infrastructure. These ballot initiatives threaten to stall massive future computing capacity, driving steep losses across chipmakers and data infrastructure firms. Consequently, capital fled into traditional safe-haven assets, sending gold to a multi-week peak.