Tech stocks plunge as AI slowdown fears follow US midterm win

US tech stocks tumbled more than 5.5% on Thursday as fears of an AI slowdown after the Democrats' midterm victory sent the Nasdaq down by an estimated $2.5 trillion in market value. Japan's Nikkei 225 fell 6.3% and the UK's FTSE 100 slipped around 2.2% in the same session. The sell‑off hit companies tied to artificial‑intelligence chips and semiconductors the hardest, according to business reporter Rachel Clun. When US markets reopened on Friday, shares in several firms edged higher: Nvidia jumped over 7%, SpaceX rose 6.19%, and chip makers AMD and Micron also posted modest gains, though none have fully recovered.

Reaction

Former President Donald Trump posted on social media that only "foolish leadership" would reject the "riches" AI can bring. UK tech founder Tudor Brown said there were "jitters" around "infinite AI growth" before the midterms but expects money to start flowing back. AlphaSimplex chief strategist Katy Kaminski called the volatility normal and noted investors are now sorting out which AI firms can actually turn a profit. Tech London Advocates founder Russ Shaw warned that AI has become a political liability and big players must better justify their data‑centre bets.

Context

Data‑centre construction has become a hot election issue, with governments pushing fast approvals while local groups protest projects over cost, resource and environmental concerns, as seen in the Geef Tegengas protest against a Microsoft centre in Amsterdam.