US election crashes tech stocks

US election results triggered a sharp selling wave on Wall Street. Because voters elected candidates who promised to limit artificial intelligence development and halt data center investments. Therefore, Nasdaq lost approximately $2.5 trillion in market value in a single day, according to Dow Jones data.

Moreover, the decline was not just a stock market news. On the other hand, investors feared possible regulatory freezes. That's why the shares of companies producing artificial intelligence hardware declined rapidly. Moreover, the US election was an unexpected test for these companies.

Which Companies Lost How Much After the US Election?

First of all, Nvidia's shares fell more than 9 percent. Thus, the company lost more than $400 billion in market value. Additionally, AMD and Micron lost over 17 percent.

Nvidia: more than 9 percent decline

AMD and Micron: more than 17 percent decline

SanDisk: 22 percent decline

Tesla: about 11 percent decline

As a matter of fact, Elon Musk's Tesla could not escape this wave. Moreover, the company's heavy spending on political campaigns could not prevent anti-AI voter turnout. In fact, seven major technology giants, called the Magnificent Seven, lost more than $1 trillion in total on Thursday.

US Election Hits Asian Markets Too

However, the selling wave spread to Asian markets overnight. For example, South Korea's Kospi index decreased by 8.5 percent. Then, when SK Hynix fell 11.5 percent, transactions were temporarily halted.

Especially at the center of the voter reaction are the electricity and water needed by giant server centers. For example, Gina Hinojosa, the newly elected governor of Texas, built her campaign on a promise to halt new data center construction. Meanwhile, Senator Bernie Sanders called for a national moratorium to protect local power grids.

In addition, executives speaking at the WSJ Tech conference said they were surprised by the extent of the local reaction to the US election process. For example, Greg Brockman, co-founder of OpenAI, stated that companies should talk directly to local people. At the same time, Meta manager Dina Powell McCormick argued that the technology industry should better explain the benefits of artificial intelligence in daily life.

Investors Doubt Yields

In addition to political developments, the decline after the US election also shows a deeper concern. Because investors question whether the huge expenditures on artificial intelligence hardware will pay off. Additionally, fears of data center delays coincide with doubts about long-term profitability, according to Wealth Club Chief Investment Strategist Susannah Streeter.

But market analyst Ed Yardeni does not see the decline as a full-blown economic collapse. According to him, a swollen AI balloon is rapidly losing its air. Finally, the next test for the industry is that producing faster hardware also depends on the approval of local communities.