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The Nasdaq 100 index erased $2.5 trillion in market value in a single day as Nvidia and other major technology companies suffered steep losses amid growing fears over the future of artificial intelligence (AI) infrastructure spending in the US. Nvidia shares dropped 9% during Thursday’s trading session, while Advanced Micro Devices (AMD) plunged 17%. The Philadelphia Semiconductor Index, which tracks major chipmakers, fell 12% and touched its lowest level in more than six months. Data centre operators Applied Digital, Cipher Digital and IREN each tumbled more than 14%. GE Vernova shares fell 7.4%, while Constellation Energy declined 2.5%. Microsoft shares dropped 3.6%, while Amazon and Alphabet each fell 2.2%.
The tech-heavy Nasdaq Composite plunged 5.5% on November 5, marking its biggest one-day drop since the market sell-off triggered by US President Donald Trump’s “Liberation Day” tariffs in April 2025, according to a Reuters report. The sharp decline came after Democrats scored major victories in the US midterm elections, raising concerns that increased political scrutiny and opposition to data centre construction could slow the expansion of AI infrastructure. The weakness also extended to companies supplying power and equipment for the AI infrastructure boom.