Key takeaways Nasdaq tumbles 3% as AI stocks extend losses Technology shares remain under pressure after trillion-dollar wipeout Nvidia, Qualcomm and CoreWeave face renewed selling pressure U
US technology stocks suffered another sharp selloff on November 5, sending the Nasdaq Composite down approximately 3% as investors continued questioning the enormous cost of artificial intelligence infrastructure.
The latest decline follows an October 30 rout that erased more than $1 trillion from technology valuations. According to Cboe Global Markets, that earlier collapse reflected deteriorating confidence in AI spending, with semiconductor stocks suffering particularly severe losses.
Thursday's decline also erased the S&P 500's gains from Wednesday's post-election rally, highlighting how rapidly market sentiment has shifted following the US midterm elections.
Nasdaq Drops 3% as Nvidia and AI Stocks Lead LossesThe Nasdaq fell approximately 3% on Thursday, while the S&P 500 declined 1.8% and the Dow Jones Industrial Average lost 403 points.
Semiconductor companies were among the hardest hit, with Nvidia extending its recent decline while AMD and AI cloud provider CoreWeave also faced heavy selling.
Qualcomm added to the pressure after disappointing investors with its latest earnings outlook. The chipmaker fell more than 10% in early trading as weak smartphone demand and declining Apple-related revenue overshadowed its expansion into AI infrastructure.
The weakness follows October's historic Intel stock collapse, when the company's shares plunged 28.6% in a single session.
Investors have also been reassessing the broader Nasdaq correction, which pushed the Nasdaq 100 more than 10% below its October record earlier this week.
AI Data Center Concerns Deepen After US ElectionsBeyond disappointing earnings, investors are becoming increasingly concerned that political opposition could slow the construction of new AI data centers.
Democratic victories in the November 3 elections have increased scrutiny of electricity consumption, infrastructure costs and the environmental impact of rapidly expanding computing facilities.
Reuters reported that UBS strategists estimate approximately 30% of expected US data center capacity additions in 2028 could face delays.
That uncertainty particularly affects semiconductor manufacturers, electricity suppliers and companies financing large computing facilities.
The broader AI debt market has already come under pressure, with investors demanding higher yields from borrowers heavily exposed to data center construction.
Unlike established technology companies with diversified revenue streams, smaller AI infrastructure operators frequently depend on external financing to purchase expensive processors and build facilities.
Higher borrowing costs, permitting delays and uncertain future demand can therefore put considerable pressure on their valuations.
Stock Market Today: Why Some Companies Are Still RisingDespite the technology selloff, weakness was not universal.
AppLovin shares surged following stronger-than-expected quarterly results and an expanded share-repurchase program, demonstrating that investors continue rewarding companies delivering substantial profits.
The contrast is increasingly important as the market separates businesses generating immediate earnings from those requiring years of infrastructure investment before producing meaningful returns.
Wednesday's post-election rally had briefly lifted major indexes as investors welcomed falling oil prices and lower Treasury yields.
