U.S. Midterm Election Results Trigger AI Stock Sell-Off; Nasdaq Plunges 5.7%

Triggered by midterm election outcomes and expectations that the newly elected Texas governor may halt data center construction, the Nasdaq Composite plummeted up to 5.7% during Thursday trading, sliding into correction territory. Chipmakers and compute infrastructure providers took the hardest hit: Nvidia tumbled 7%, wiping out its year-to-date gains, while compute leasing providers CoreWeave and Nebius dropped roughly 11% and 15%, respectively. As markets digest the impact of shifting policies on data center expansion, analysts remain divided on whether this pullback represents an unwinding of an overbuilt bubble or a long-term buying opportunity.