Tech Stocks Plunge as Nasdaq Sees Worst Day Since April 2025
Nvidia and Qualcomm fell over 9% as election results sparked doubts about the pace of AI infrastructure expansion.
Chipmaker stocks suffered sharp declines this Thursday. Nvidia lost nearly 450 billion dollars in market value. This movement dragged the Nasdaq index to its worst performance in 19 months with a 5.5 percent drop.
The climate of uncertainty was intensified by the midterm election results. Democratic victories in key states like Texas and Ohio raised concerns about the viability of new data centers. Local measures in ten states restricted the construction of these facilities in nearly every vote.
Qualcomm also pressured the market by issuing a profit forecast below expectations for the current quarter. Other companies in the sector such as Advanced Micro Devices and Micron recorded double-digit losses. The environment of high interest rates and heavy capital requirements amplified investor pessimism.
Tech executives admit that building physical infrastructure will become more difficult in the current political context. The market's main concern lies in the relationship between high corporate debt and insufficient revenue generation. Technology development continues, but the pace of data center deployment faces growing barriers.
Volatility in chip companies may increase global risk aversion, pushing the dollar higher and reducing appetite for riskier assets like Bitcoin.
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