AI Stocks Plunge: Nvidia, AMD Drop 7.5% to 17.3% on Regulation Fears

Key Takeaways

• S&P 500 fell 3.5% to 4.4% in one of its worst sessions since 2025, erasing prior gains
• Nvidia dropped between 7.5% and 9.3% while AMD fell as much as 17.3% on AI regulation concerns
• South Korea's Kospi plunged over 5% and Japan's Nikkei 225 lost nearly 2% amid AI stock selloff
• Google announced a $15 billion investment in Malaysia, creating 37,000 jobs and building its first data center there
• Oracle launched a new engine to help AI agents manage enterprise data securely across multiple cloud environments
• China's AI sector lost $480 billion in market value as the STAR500 index fell 40% over four months
• Applied Optoelectronics reported record Q3 revenue of $269.9 million and expects over 1 million monthly units by 2027
• AI spending is growing fast across businesses, but costs are slowing as competition drives prices lower
• Marvell agreed to acquire Lumentum in a $115 billion all-stock deal while Meta raised funds via a $15 billion bond sale
• Democratic midterm victories raised concerns that projects planned for 2028 face more regulatory risk than those already under construction

Asian shares mixed as AI stocks sink after US midterm elections

Asian shares were mixed on Thursday after the U.S. midterm elections. AI-related stocks fell sharply in South Korea and Japan. The Kospi dropped over 5% and the Nikkei 225 lost nearly 2%. Samsung Electronics and SK Hynix fell steeply. Other Asian markets like Hong Kong and Australia mostly gained.

Asian stocks mixed as AI data center regulation worries rise

Asian stocks ended mixed on Thursday as chipmaking shares slumped on worries about tighter tech regulation. A Democratic-led U.S. Congress could slow AI data center construction and reduce spending. Brent crude fell to $95 a barrel on hopes the US-Iran war could end. China's Shanghai index edged up 0.1% while Hong Kong's Hang Seng surged 3.7%.

World shares gain after US midterms despite AI stock selloff

World shares were mostly higher on Thursday despite heavy selling of AI-related stocks after the U.S. midterm elections. South Korea's Kospi fell 5.3% and Japan's Nikkei 225 dropped 1.8%. European markets gained with the German DAX up 0.6% and the CAC 40 up 1.2%. U.S. stocks had surged on Wednesday after Republicans lost control of Congress.

Stocks plunge as investors fear AI risks after midterms

The stock market fell sharply on Thursday over concerns that a change in congressional control could slow AI data center construction. The Nasdaq dropped 5% and the S&P 500 fell 3.9%. Nvidia fell 7.5% and Advanced Micro Devices tumbled 14.6%. CoreWeave dropped 12.1%. Trump Media & Technology Group also fell further to around $4.

AI stock wipeout sends Wall Street into major decline

A wipeout in AI-related stocks overwhelmed Wall Street on Thursday, erasing the previous day's gains. The S&P 500 fell 3.5% and the Dow dropped 1,433 points. Nvidia fell 7.5% and Advanced Micro Devices dropped 14.6%. Brent crude rose 2.6% to $97.11 while Treasury yields eased. The Bank of England raised interest rates for the first time in three years.

AI stock crash wipes out Wall Street gains after midterm elections

The S&P 500 fell 3.5 percent on Thursday in its worst drop since April 2025. Nvidia fell 7.5 percent and Advanced Micro Devices tumbled 14.6 percent as AI-related stocks sold off worldwide. Tuesday's midterm elections where Democrats won added worries that governments could pause construction of AI data centers.

S&P 500 drops 4.4 percent in worst session since 2025 tariffs

The S&P 500 fell 4.4 percent while the Dow Jones sank 1,833 points and the Nasdaq tumbled 5.5 percent. Nvidia fell 9.3 percent and Advanced Micro Devices dropped 17.3 percent. South Korea's Kospi index also tumbled 5.3 percent as global markets felt pressure from the AI industry slowdown.

Wall Street reels as AI stock sell-off erases market gains

A massive sell-off led by AI data center stocks hit Wall Street on Thursday. The S&P 500 fell 4.4 percent and the Nasdaq sank 11.9 percent below its all-time high. The Dow Jones dropped 1,833 points while global markets including Japan's Nikkei 225 also declined due to AI-related losses.

AI stock crash sends S&P 500 down 4.4 percent in major sell-off

The S&P 500 fell 4.4 percent and the Nasdaq dropped 1,421 points as AI stocks crashed. Nvidia fell 9.3 percent while AppLovin jumped 31 percent after strong earnings results. Brent crude oil rose 3.9 percent to $98.29 while the 10-year Treasury yield fell to 4.84 percent as investors sought safer investments.

AI stocks crash as Wall Street suffers worst day since 2025

The S&P 500 fell 334.89 points to 7,353.73 while the Dow Jones dropped 1,833.06 points. Nvidia fell 9.3 percent and CoreWeave dropped 9.8 percent following midterm election results. AppLovin rose 31 percent and Tapestry gained 7.1 percent as some companies reported strong earnings.

Wall Street futures mixed as Nasdaq falls on AI stock weakness

Wall Street futures traded mixed on Thursday with Nasdaq futures down 0.6 percent due to pressure on chipmakers and data center stocks. Qualcomm plunged 10.1 percent in premarket trading after reporting weak smartphone chip sales. Nvidia, Marvell Technology, and Intel also declined. Brent crude futures dropped 1 percent to USD 93.5 per barrel. The S&P 500 had posted its biggest single-day gain in three months in the previous session.

Google announces RM60 billion investment in Malaysia with 37,000 jobs

Google announced a USD 15 billion investment in Malaysia for 2027 and 2028, including its first data center in the country. The construction phase is expected to support more than 37,000 local jobs annually and contribute USD 1.1 billion to Malaysia's GDP each year. Google plans four programs targeting about 800,000 Malaysians from 2027 to 2031, including free AI training. The company also plans to add more than 1GW of clean energy capacity to Malaysia's national grid.

Google's US15 billion investment supports Malaysia's AI nation 2030 goal

Digital Minister Gobind Singh Deo said Google's US$15 billion investment reflects confidence in Malaysia's goal to become an AI nation by 2030. The investment will expand data center campuses in Selangor and Negeri Sembilan, building on the existing Elmina Business Park facility. Google is working with more than 80 Malaysian suppliers across construction, engineering, and network infrastructure. Four new Google programs will upskill approximately 800,000 Malaysians between 2027 and 2031.

Oracle Database launches one engine to manage enterprise AI data

Oracle Database introduced a new engine designed to give AI agents the context needed to handle enterprise data effectively. Generic AI models lack knowledge of a company's specific orders, customers, and revenue definitions, but Oracle's engine addresses this gap. The database runs on-premises, through Oracle Cloud@Customer, and across multiple public clouds. The engine builds on 40 years of development focused on high availability, security, scalability, and performance.

Oracle aims to move AI agents from demo mode into production

Oracle is working to help companies move AI agents from demonstration phase into real production use. Enterprises face four main deployment difficulties including security, resiliency, complexity, and budget control. Oracle's Autonomous AI Database encrypts data at rest and in transit by default with protections users cannot turn off. The database commits to 99.995 percent availability and patches systems on a weekly basis while keeping the database online and accepting new connections.

Victorian parties clash over AI election videos

Victoria's major political parties are fighting over AI-generated videos used in election ads. Labor posted a scary video showing Liberal leader Jess Wilson claiming healthcare costs would skyrocket under her party. Wilson denied making these claims and called the video a smear campaign. Premier Ben Carroll defended the video by saying Wilson previously supported American-style healthcare. Experts warn that such deepfakes hurt trust in democracy and suggest small fines could stop this behavior.

US midterms may split AI trade into two groups

The US midterm elections might create a divide in the AI industry based on data center rules. Democratic victories could lead to stricter regulations on new data centers in states like Texas. Companies with existing capacity might benefit while others relying on debt face challenges. Shares in Nvidia-backed firms like CoreWeave, Nebius, and Iren dropped over 30% due to these concerns. Projects planned for 2028 face more risk than those already under construction for 2027.

China AI stocks fall sharply amid profit worries

China's AI sector is facing a major slump with an index losing 40% of its value in four months. This drop erased $480 billion in market value and affects the STAR50 index heavily. Companies like Zhongji Innolight face pressure from potential US equipment restrictions. While some firms like DeepSeek raised $15 billion and Huawei got $2.3 billion in loans, investors worry about the bubble bursting. High energy and water needs for AI systems also raise sustainability concerns.

Applied Optoelectronics hits record revenue and profit

Applied Optoelectronics reported record Q3 2026 revenue of $269.9 million and returned to profit with $6.3 million in net income. The company is building up production for AI optical products after securing a big deal with a major datacenter client. They expect to make over 500,000 units monthly by the end of 2026 and more than 1 million by 2027. Q4 revenue is forecast between $385 million and $420 million as demand stays strong.

AI spending grows but top bills are slowing down

New data from Ramp shows that AI spending is growing fast but the biggest bills are starting to slow. Lead economist Ara Kurazzian says usage is up while bills are down because AI has become cheaper. Competition among providers has driven prices lower, making the technology more affordable for businesses. Ramp tracks over 80,000 businesses and found that AI grew faster than any other category in the past two years.

Scott Wiener eyes House AI select committee

Scott Wiener, a California state senator and AI policy voice, wants to create a House select committee on artificial intelligence. He is set to take over Nancy Pelosi's seat. Wiener says he will follow Hakeem Jeffries' lead, but his interest shows that new lawmakers with AI priorities want a platform.

AI stocks fall as Democrats win midterms and Big Tech reports mix

Democratic wins in the midterms caused AI stocks to drop on Wednesday. Chipmakers like Micron, CoreWeave, and Marvell fell sharply. Arizona Rep. Yassamin Ansari called for a pause on advanced AI development and a ban on artificial superintelligence. AMD posted strong third-quarter results and expects 80% sales growth in 2027. Apple shares fell due to rising memory chip prices, while Meta announced a $15-billion bond sale to fund AI infrastructure. Marvell also agreed to buy Lumentum in a $115 billion all-stock deal.

Sources

• Asian shares are mixed after US midterm elections as AI-related stocks sink in Japan and South Korea
• Asian shares mixed as AI-data centres slide on regulation worries
• World shares mostly gain after U.S. midterm elections as AI-related stocks sink
• Stocks crater as investors recoil from tech companies amid AI risks
• A wipeout for AI stocks sends Wall Street reeling
• AI stock sell-off sends Wall Street reeling and erases midterm rally gains
• AI stock sell-off sends the S&P 500 down 4.4% in worst day since April 2025
• A brutal sell-off for AI stocks sends Wall Street reeling; S&P 500 sees worst day since 2025 ‘Liberation Day’ tariffs
• A brutal sell-off for AI stocks sends Wall Street reeling, and the S&P 500 tumbles 4.4%
• A brutal sell-off for AI stocks sends Wall Street reeling, and the S&P 500 tumbles 4.4%
• Wall Street futures point to mixed open; Nasdaq slips 0.6% on AI weakness
• From 37,000 Jobs To Free AI Training, Here Are 13 Benefits Of Google’s RM60 Billion Investment
• Google’s US$15 bil investment strengthens AI nation 2030 ambition
• Oracle Database pitches one engine to tame enterprise AI data
• AI architecture gaps keep agents stuck in demo mode
• Scare campaigns: Victoria’s major parties trade blows over AI-generated videos of leaders in election ads
• The midterms could fuel the K-shaped AI trade
• The AI boom's warning sign may already be flashing in China
• Applied Optoelectronics posts record Q3 revenue, returns to profit, and plans major 2027 capacity expansion for AI products.
• Ramp data shows AI bills crack at the top
• Tech: Wiener looks to select AI panel
• AI Roundup: AMD, Apple Results Puzzle Investors, Democrats’ Midterm Win Weighs On Traders