Tech stocks are suffering their biggest selloff since Covid, as investors see premature end to AI datacenter boom
Source: Fortune ·
Two days after voters overwhelmingly rejected data centers, the companies that make the chips, networking gear, and other tech for the facilities saw their stocks crushed.
From the source
It may have been Blue Tsunami on Tuesday but it was a sea of red that washed over tech stocks on Thursday, covering everything from chips and datacenter companies to software and gig economy firms, as investors panicked that the U.S. midterm election results will bring the AI boom to a premature halt, or at least, a significant slowdown. The tech-heavy Nasdaq was down more than 1,340 points, or 5.2% in midday trading, shedding more than $3 trillion in market cap, and representing its biggest daily drop since the Liberation Day tariff announcement in April 2025, according to Bloomberg data. The Philadelphia Semiconductor Sector index, which tracks the 30 largest companies in the chips business, was down more than 1,000 points—on track for its single biggest day loss since March 2020. Some of the biggest names in tech took it on the chin, with Facebook parent company Meta down 3.4%, Microsoft down 2.8%, and Nvidia down 8%. Thursday’s selloff dragged down the entire market, marking a…