The results of the US midterm elections shifted market expectations regarding AI industry policy and data center investment prospects, triggering a concentrated sell-off in AI supply chain stocks.
NVIDIA (NVDA) ranked first, closing down 9.26% with $55.846 billion in trading volume. Democrats achieved a major victory in the midterm elections, and the market is concerned that Democratic control of Congress could lead to stricter AI regulation and a halt in data center construction. As the leading AI chip company, NVIDIA is highly sensitive to data center capital expenditure. If data center construction slows, it could impact GPU demand and future order growth expectations. Additionally, NVIDIA's stock price had accumulated significant gains previously, and market skepticism about the return on AI investment has intensified profit-taking pressure.
Micron Technology (MU) ranked second, closing down 17.46% with $52.543 billion in trading volume. Concerns about slowing AI data center construction hit the memory chip sector. AI servers have strong demand for high-performance memory products such as DRAM and HBM, and Micron Technology is a key supplier in this supply chain. Investors worry that if AI capital expenditure growth slows, it could affect future high-bandwidth memory demand and memory chip prices. Furthermore, the market has begun to reassess the previously high valuations of memory chip companies, with capital concentrated withdrawal from the AI hardware supply chain.
Advanced Micro Devices (AMD) ranked third, closing down 17.26% with $29.449 billion in trading volume. AMD was also hit by cooling AI data center investment expectations. Its data center business and AI products are important sources of future growth. The market is concerned that slowing AI infrastructure construction could affect AMD's server chip growth prospects. Additionally, the semiconductor sector as a whole faced a sell-off, and AMD, as a high-valuation, high-volatility tech stock, was particularly hard hit.
Tesla Motors (TSLA) ranked fourth, closing down 10.77% with $27.225 billion in trading volume. Democratic election victories in Texas and other places raised market concerns about the future regulatory environment for companies under Musk. Tesla Motors is not only a new energy vehicle company; its energy business also provides energy storage products to data centers, so it is also affected by expectations of slowing data center construction. Moreover, Democrats regaining control of Congress could increase regulatory hurdles for the potential merger between Tesla Motors and SpaceX, affecting market expectations for related deals.
SanDisk ranked fifth, closing down 22.26% with $25.683 billion in trading volume. The market is concerned that slowing AI infrastructure investment will affect future demand growth for enterprise SSDs and other products. The memory chip sector faced concentrated selling, with companies like Micron Technology and SanDisk falling sharply in tandem, reflecting investors reducing risk exposure to the AI memory supply chain.
Apple (AAPL) ranked sixth, closing down 1.53% with $25.503 billion in trading volume. Although Apple's previously reported quarterly results exceeded market expectations, there are concerns that AI-driven increases in memory chip demand will push up memory procurement costs, squeezing profit margins on hardware products like iPhone and Mac. Compared to companies directly affected by AI capital expenditure such as NVIDIA and Micron Technology, Apple has been relatively less impacted.
Microsoft (MSFT) ranked seventh, closing down 3.58% with $22.433 billion in trading volume. As a major global cloud computing service provider, Microsoft's Azure business is highly dependent on data center infrastructure investment. The market is concerned that Democrats may push for stricter data center construction approval and regulatory policies, affecting the pace of US AI infrastructure expansion. Additionally, investors are reassessing the returns on continuous AI capital expenditure increases by large tech companies like Microsoft, worrying that massive investments may not quickly translate into corresponding profits.
Amazon.com (AMZN) ranked eighth, closing down 2.19% with $21.832 billion in trading volume. SpaceX ranked ninth, closing down 9.05% with $21.078 billion in trading volume. Meta Platforms (META) ranked tenth, closing down 3.96% with $16.928 billion in trading volume. Broadcom (AVGO) ranked eleventh, closing down 10.43% with $15.83 billion in trading volume. Taiwan Semiconductor Manufacturing (TSM) ranked twelfth, closing down 10.78% with $15.141 billion in trading volume. Alphabet (GOOGL) Class A shares ranked thirteenth, closing down 2.20% with $14.983 billion in trading volume. Intel (INTC) ranked fourteenth, closing down 10.33% with $14.284 billion in trading volume. Alphabet ranked fifteenth, closing down 1.94% with $11.42 billion in trading volume. Marvell Technology (MRVL) ranked sixteenth, closing down 16.43% with $9.182 billion in trading volume. AppLovin Corporation (APP) ranked seventeenth, closing up 31.04% with $7.778 billion in trading volume. Palantir (PLTR) ranked eighteenth, closing down 9.73% with $7.656 billion in trading volume. Eli Lilly ranked nineteenth, closing down 3.76% with $6.654 billion in trading volume. SK Hynix ranked twentieth, closing down 13.40% with $6.506 billion in trading volume.
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