Tech stocks plunge as US election results fuel fears of an AI slowdown

Shares in technology, semiconductor and data-centre companies fell sharply after the US midterms gave Democrats majorities in both chambers of Congress from January 2027. The BBC reported that the Nasdaq fell by more than 5%, while Nvidia, AMD, Tesla and SpaceX recorded steep declines. The move reflected fears that massive investments in AI infrastructure may not deliver the expected returns and that tougher scrutiny could delay new facilities.

According to Reuters, investors also fear state and local restrictions on data-centre permits. UBS analysts estimate that possible project suspensions could put about 30% of the additional capacity planned for 2028 in the US at risk, although no cancellations have been confirmed. OpenAI’s Greg Brockman told the WSJ conference that the industry needs to work more closely with communities, while Meta’s Dina Powell McCormick said companies should do more to explain AI’s benefits.