Technology stocks experienced a significant downturn on Wall Street as investors grew anxious about the future of artificial intelligence (AI) data center projects in the wake of the U.S. midterm elections. The sharp decline reversed much of the previous session’s gains, compounded by a rebound in oil prices that added pressure to financial markets.
The Nasdaq Composite saw a notable drop during Thursday’s trading, with semiconductor companies, such as Nvidia, Advanced Micro Devices (AMD), and Micron Technology, suffering some of the most substantial losses. Nvidia’s shares fell over 6%, AMD declined by 12%, and Micron Technology dropped 11%. These companies are key suppliers of processors and memory chips vital for AI data centers, and their growth has been closely tied to the expansion of computing infrastructure to support AI services.
Investor concerns stem from growing opposition to large-scale data center developments across the United States. Several candidates who performed well in the midterm elections have advocated for restrictions or temporary suspensions on new data center projects, citing issues such as energy consumption, infrastructure demands, and effects on local communities. This uncertainty over potential regulatory changes has weakened confidence in AI-related stocks, which have recently been strong market performers.
In parallel, oil prices rebounded after a previous sharp drop. Brent crude increased by 2.3% to $96.79 per barrel, while U.S. West Texas Intermediate crude rose by 2.4% to $90.26. This recovery followed expectations that political pressure in Washington might encourage diplomatic efforts to resolve the conflict with Iran.
European markets also faced mixed trends, with major indexes in London and Frankfurt closing lower after initially gaining post-election results in the U.S. Similarly, Asian technology stocks encountered pressure, with South Korea’s benchmark index declining by more than 5%.
The current sell-off underscores rising investor uncertainty regarding the sustainability of AI-related investments, potential government restrictions on data center expansion, and shifting dynamics in global energy markets.