Global technology stocks came under heavy pressure on Thursday, November 5, as investors sold shares linked to artificial intelligence infrastructure amid concerns about the cost and future pace of the AI boom.
The Nasdaq Composite fell 5.5 per cent, marking its steepest one-day decline since April 2025 and pushing the technology-heavy index further into correction territory.
The S&P 500 dropped 4.4 per cent, while the Dow Jones Industrial Average declined 3.4 per cent.
Semiconductor companies led the losses, with the Philadelphia Semiconductor Index falling 12.2 per cent. Nvidia shares dropped 9.3 per cent, while Advanced Micro Devices fell 17.3 per cent.
The sell-off followed growing concerns that political pressure and possible regulatory scrutiny could slow the expansion of data centres in the United States.
Investors are also questioning whether the enormous sums being committed to AI infrastructure will generate sufficient returns, particularly for companies supplying chips, memory and power systems.
The market reaction came after Democratic victories in the US midterm elections raised expectations of greater scrutiny of data-centre development and its impact on electricity costs and local communities.
The decline highlights the growing sensitivity of financial markets to developments surrounding artificial intelligence, an industry that has been a major driver of technology stock valuations.
