Global technology shares plunged on Thursday, November 5, as fears over artificial intelligence spending and tighter regulation triggered a broad Wall Street selloff. The Nasdaq Composite sank 5.5%, the S&P 500 dsii 4.4%, and the Dow Jones Industrial Average fell 3.4%. The slide erased about USD 3 trillion from S&P 500 companies, according to Reuters. Selling then spread to Asian stock markets on Friday, led by sharp losses among major chipmakers.
Investors faced fresh doubts about high technology valuations and the returns from costly AI projects. The US midterm election results added concerns that new restrictions could slow data center construction and future equipment orders.
The Nasdaq's Thursday decline pushed the index into correction territory, nearly 12% below its October record high. The Nasdaq 100 dropped 6.4%, losing roughly USD 2.5 trillion in market value during the session.
The pressure fell hardest on semiconductor stocks and companies tied to AI hardware. The Philadelphia Semiconductor Index plunged 12.2%, marking its largest daily decline since April 2025. Those losses extended across chip designers, memory suppliers and businesses supporting data centre expansion.
Nvidia fell 9.3% as traders reduced exposure to a leading supplier of processors for generative AI systems. Advanced Micro Devices suffered a steeper 17.3% drop. Meanwhile, GE Vernova, which supplies power equipment, lost 7.5% as selling reached companies serving the wider computing industry.
The decline extended to major cloud providers. Amazon and Alphabet each slipped 2.2%, while AI infrastructure provider Core Weave fell about 10%. Its losses came amid growing concern about financing conditions for companies expanding computing capacity.
Technology companies have committed large amounts of capital to chips, cloud systems and data centres. Yet investors now question how quickly those projects can produce enough revenue to support their costs. High valuations have made technology shares sensitive to changes in earnings expectations.
What happens to demand for AI chips if data centre projects slow under tighter rules and higher borrowing costs? The question gained urgency after Democrats won control of both chambers of Congress in the US midterm elections. Investors began weighing the prospect of stronger oversight of AI development and infrastructure.
Public opposition to some data centre projects has focused on electricity consumption and water use. Analysts warned that tougher requirements could delay construction and reduce near-term orders for semiconductor equipment. At the same time, higher financing costs have placed more pressure on infrastructure providers that rely on borrowed money.
Weak results from Qualcomm deepened the decline in technology shares. The broader downturn raised fresh questions about the timing of major technology listings, including a potential initial public offering by Anthropic.
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The losses crossed into Asia on Friday, November 6, where exchanges with heavy semiconductor exposure came under pressure. South Korea's KOSPI plunged more than 8% in early trading as investors sold technology shares.
The steep fall triggered a 20-minute halt in stock and derivatives trading. The benchmark reached its lowest level in nine months before recovering part of its decline. Even after the rebound, major chip manufacturers remained under pressure.
Samsung Electronics and SK Hynix recorded sharp losses as investors considered weaker demand for advanced memory products. Both companies supply memory used in modern computing systems, including AI infrastructure.
Japan's Nikkei fell sharply as the retreat spread through the region's technology and semiconductor sectors. The declines followed Thursday's losses on Wall Street, where concerns about AI spending and regulatory limits had hit chipmakers and infrastructure suppliers.
Market figures and the South Korean trading halt were cross-checked against November 5–6 reporting.
The November 5 selloff erased about USD 3 trillion from S&P 500 companies as the Nasdaq entered correction territory. Semiconductor shares took the largest losses amid concerns over AI spending, financing, and future regulation. By November 6, the decline had reached South Korea and Japan.