Nasdaq 100 eyes $1.8 trillion loss as Democratic win sparks AI delay fears
QQQ•The Nasdaq 100 was set to lose $1.8 trillion in stock value as investors worried Democratic control of Congress could slow AI infrastructure expansion. Chipmakers, data-center operators and other companies exposed to the buildout fell sharply, while UBS analysts estimated 30% of expected 2028 U.S. data-center capacity additions could be at risk.
1. AI-linked shares fall
The Nasdaq 100 was set to lose $1.8 trillion in stock value on Thursday as investors feared a Democratic victory in the midterm elections could stall AI infrastructure expansion. Semiconductor and neocloud shares fell for a second straight day amid concern that data-center projects worth billions of dollars could be delayed.
2. Broad declines across sector
CoreWeave slumped 11.4%, and its five-year credit default spreads widened to a record high. Nebius fell 15.2%, while the Philadelphia Semiconductor index dropped 10.2% to its lowest level in more than six months, weighed down by Nvidia and Broadcom. Data-center operators Applied Digital, Cipher Digital and IREN fell more than 18%; GE Vernova lost 8% and Constellation Energy slipped 5%.
3. Buildout faces scrutiny
Investors worry Democratic control of Congress could bring tougher scrutiny of data centers and slow development as public opposition to new facilities mounts. UBS analysts estimated that about 30% of expected U.S. data-center capacity additions in 2028 could be at risk from potential construction pauses. The selloff also reflected questions about whether the capital spending required for AI infrastructure will generate sufficient returns. Separately, Qualcomm fell 12.8% after quarterly smartphone-chip sales missed Wall Street estimates.
