Nvidia loses $440 billion as US technology selloff spreads after midterm elections

Technology plummeted on the US stock market on Thursday, as a collapse in 12 listed stocks in the technology sector was sparked by the US midterm elections. Losses for NVIDIA equated to around $440bn of market value. Losses for Tesla and SpaceX on the day equated to around $420bn of market value. The collapse of technology on the day was partly due to fears of increased regulation of data centers that house artificial intelligence, among other things. The Nasdaq Composite plummeted 5.52% to 24,315.

Key Takeaways

• S&P 500 declined 4.36% to 7,353.73, while Dow Jones Industrial Average fell 3.44% to 51,523.06.
• The Magnificent Seven fell by up to $1 trillion in market value combined. Meta stock fell 4% and the stock of Amazon and Alphabet each fell 2.2% on the day.
• The Philadelphia Semiconductor Index fell more than 12% with Qualcomm down 9.5% after the company’s fourth-quarter smartphone chip sales missed expectations from Wall Street.
• The following stocks recorded double-digit or near-double-digit declines in trading. IREN, Applied Digital and CoreWeave all fell more than 14%, 10% respectively as AI data-centre focused stocks came under fire.
• In Asia the sell-off continued with South Korea’s KOSPI plummeting as much as 8.8% throughout the day, and Japan’s Nikkei down more than 5% on the session.

Nvidia loses around $440 billion in market value

Nvidia shares fell more than 9% on Thursday, US market data showed. The company lost around $440 billion in market capitalisation during the session.

Tesla and SpaceX lose approximately $420 billion together

Tesla shares fell by as much as 9% on Thursday, according to US market data. SpaceX shares also fell by as much as 9%. Their combined market value loss was approximately $420 billion.

Meta Platforms falls 4% as technology losses widen

Meta Platforms declined 4% on Thursday, US market data showed. The fall formed part of the reported decline across the Magnificent Seven technology companies.

Amazon falls 2.2% in the technology selloff

Amazon declined 2.2% on Thursday, according to US market data. Its move was reported alongside declines in other major technology companies.

Alphabet falls 2.2% as major technology stocks decline

Alphabet declined 2.2% on Thursday, US market data showed. The company was among the technology stocks affected during the session.

Qualcomm falls 9.5% after smartphone chip sales miss expectations

Qualcomm slid 9.5% on Thursday after the company reported that fourth quarter smartphone chip sales came in below the Street estimates. The company-specific sales miss was embedded in the broader decline in the semiconductor stocks.

IREN falls more than 14% as data-centre stocks decline

IREN fell more than 14% on Thursday, US market data showed. The company was among the artificial intelligence data-centre businesses with double-digit losses.

Applied Digital falls more than 14% in AI infrastructure selloff

Applied Digital fell more than 14% on Thursday, according to US market data. Its decline was reported among companies exposed to artificial intelligence data-centre expansion.

CoreWeave falls almost 10% as AI infrastructure shares decline

CoreWeave declined almost 10% on Thursday, US market data showed. The move placed the company among the artificial intelligence infrastructure stocks with near-double-digit losses.

GE Vernova falls 7.5% as data-centre-linked companies decline

GE Vernova declined 7.5% on Thursday, according to US market data. The company was included among electricity and equipment suppliers linked to data centres.

Constellation Energy falls 2.5% in the wider technology-linked selloff

Constellation Energy declined 2.5% on Thursday, US market data showed. Its shares fell alongside other companies connected to data-centre electricity supply.

Nasdaq falls 5.52% to 24,315

The NASDAQ Composite fell 5.52% to 24,315 in today’s biggest single day drop in 19 months. The S&P 500 dropped 4.36% to 7,353.73 and the Dow Jones Industrial Average fell 3.44% to 51,523.06.

Stocks from US markets reported that the “Magnificent Seven” of mining stocks had seen their stock market value drop by $1 trillion. The S&P 500 as a whole had fallen by $3 trillion in market capitalization.

Semiconductor index falls more than 12% as Asian markets also decline

The Philadelphia Semiconductor Index fell more than 12%, according to Philadelphia Semiconductor Index data. South Korea's KOSPI fell as much as 8.8% and triggered a circuit breaker, while Japan's Nikkei declined more than 5%, according to the respective market data.

Democratic control of Congress raises data-centre regulation concerns

An early look at the results from the US midterm elections suggests that the Democrats will control both Houses of Congress. In many of the states where there is the most resistance to new data centers, Democrats won handily in local and state elections. When new, difficult regulations are finally imposed to block the construction of new data centers, a lot of key AI infrastructure will hit a brick wall.

US market data also linked the regulation concerns with existing questions about the returns on the sums being invested in artificial intelligence.