US Tech Stocks Drop Due to AI Future Concerns
The American technology sector experienced a major sell-off following the midterm congressional elections, reports Fortune.
At the close of trading on November 5, the Nasdaq index fell by 5.5%. The sell-off is linked to investor concerns over potential restrictions on data center construction, high financing costs, and uncertainty regarding the return on investment in artificial intelligence.
Chip manufacturers were hit the hardest: Nvidia shares dropped by 9.3% (according to NRK; other sources report around 5.3–9%), while AMD fell by 12.9–15.6% (data varies; the figure of 17.3% is unconfirmed). The decline also affected other technology companies.
According to analyst Dan Ives' forecast, the growth in capital expenditures by technology companies may peak as early as 2027 instead of 2028–2029. He suggests that at least 10% of the 800–1,000 planned AI data centers in the US could be canceled, and up to 20% of projects may face prolonged approval processes (no direct confirmation of this figure has been found).
