The shares of the world’s most prominent AI chip designer fell on Nov 5, extending a multi-day decline to reach a price level not seen in six months. The stock’s loss eventually reached 8%, marking the company’s sharpest one-day drop since April 2025, while competitor Advanced Micro Devices saw its valuation plunge as much as 14.6% to a July low.
The selloff followed U.S. midterms as investors feared that new regulations could jeopardize 45% of planned domestic data center capacity, according to Goldman Sachs. The turmoil erased approximately $1.2T in total U.S. market value, dragging the Nasdaq 100 and S&P 500 down 3% and 1.3% respectively, while the Dow rose 0.4% as capital rotated out of technology equities.