AI stocks like Nvidia, Micron, and Sandisk have been blown up, but keep this in mind

Live updates

1. 1h ago

   AI stocks hammered after midterm 'blue wave' election results

   Nvidia, Micron, and Western Digital's SanDisk unit tumbled Thursday as the Nasdaq Composite fell 5.5% and entered correction territory, erasing roughly $2.5 trillion in market value in a single session. The selloff accelerated after Democrats swept the midterm elections, raising investor fears of tighter antitrust enforcement, higher corporate taxes, and potential curbs on data-center power consumption that could slow the AI infrastructure buildout. Futures pared losses Friday as strategists debated whether the rout represents a buying opportunity or the start of a deeper AI bubble unwind.

   Why it matters

   The midterm 'blue wave' caught markets off guard after months of pricing in divided government. Democrats' control of both chambers increases the likelihood of legislation targeting Big Tech market power and climate rules that could raise operating costs for the massive data centers underpinning AI growth. Semiconductor equipment and memory makers were hit hardest because their revenue is most exposed to near-term capital-expenditure cycles.

   What is confirmed

   • The Nasdaq Composite fell 5.52% on Thursday, November 5, 2026, entering correction territory.
   • Approximately $2.5 trillion in market value was erased across U.S. equities in the session.
   • Nvidia, Micron, and SanDisk shares were among the hardest-hit AI-related names.
   • Democrats won control of both the House and Senate in the 2026 midterm elections.

   Still unconfirmed

   • Antitrust action could force Nvidia to alter its GPU bundling practices.
   • New data-center power regulations may stall near-term buildout schedules.
   • Hut 8's data-center construction faces no immediate work stoppage despite the political shift.

   What to watch next

   • Friday's nonfarm payrolls report and its impact on Fed rate expectations
   • Any early legislative signals from Democratic leadership on tech antitrust or energy policy
   • Nvidia and AMD earnings guidance for Q4 and FY2027 capital-expenditure outlook
   Sources used for this update (16)

   1. CNBC — Stock futures fall after Nasdaq slips into correction; traders await big payrolls report: Live updates
   2. The New York Times — Opinion | Tech Stocks Had a Terrible Day. What’s Coming Could Be Worse.
   3. CNN — What sparked the stock market’s $2.5 trillion sell-off?
   4. WSJ — The Wild Week That Brought AI Investors to the Brink
   5. The Washington Post — Why investors are dumping AI company stocks after Democrats’ election sweep
   6. www.theguardian.com — US tech stock rout: is the AI bubble bursting? - The Guardian
   7. neuralwired.com — AI Chip Stocks Plunge After 2026 Midterms: Nvidia, AMD Fall
   8. Bloomberg.com — Wall Street Strategists Call Stock Rout a Fresh Reason to Buy
   9. Seeking Alpha — The AI Selloff Just Got Messy. Here’s 3 Ways It Can Resolve (NYSEARCA:SPY)
   10. Yahoo Finance — AI stocks like Nvidia, Micron, and Sandisk have been blown up, but keep this in mind
   11. Investor's Business Daily — Dow Jones Futures Loom For Damaged Market; Nvidia Probes Huang Spying Case
   12. CNBC — Stock futures rise slightly as investors eye AI trade, brace for more data and earnings: Live updates
   confidence 88%