# AI hardware stocks fall 6% to 21% as midterm results raise construction delays

Digest AI · Hardware & Compute · published 2026-11-05T08:18:00Z · updated 2026-11-06T07:05:53Z

Canonical: https://digestai.news/story/ai-hardware-stocks-fall-6-to-21-as-midterm-results-raise-construction

## Summary

AI-related hardware stocks plunged again on Thursday, with Nvidia dropping about 6% to $188.75 and Arm Holdings falling roughly 10%. Dell Technologies lost about 9%, wiping out roughly $20 billion in market value, while Ciena and Applied Optoelectronics each fell about 11% to 13%. The selloff followed a 7% to 21% drop in data-center builders and power-equipment makers on Wednesday, after Democrats won both chambers of Congress in the midterm elections.

Investors fear stricter oversight could slow AI infrastructure growth. Texas’s new governor-elect has campaigned to pause data-center construction, and UBS analysts warn that delays could cancel nearly a third of the U.S. data-center capacity expected online in 2028. Even strong financial results, like Viavi Solutions’ 57% revenue jump to $469.3 million, failed to stop its stock from crashing 18%. Analysts suggest buying cautiously, focusing on companies with strong contracts and balance sheets.

## Key points

- Nvidia fell about 6% to $188.75, Arm Holdings about 10%, and Dell erased $20 billion in value
- Data-center builders and cooling stocks dropped 7% to 21% after midterm election results
- UBS warns midterm wins could delay or cancel ~1/3 of 2028 U.S. data-center capacity

## Why it matters

The selloff signals investor caution over AI infrastructure growth amid political uncertainty, risking delays for data-center projects and hardware demand.

## Sources

1. [The AI Selloff Is Getting Worse. Nvidia, Dell and Data Center Stocks Are Plunging Hard. Is It Time to Buy the Dip?](https://fool.com/investing/2026/11/05/the-ai-selloff-is-getting-worse-nvidia-dell-and-data-center-stocks-are-plunging-hard-is-it-time-to-buy-the-dip) (fool.com, 2026-11-05)
2. [Global stocks tumble as AI panic grips markets after Democrats’ midterm success – business live](https://theguardian.com/business/live/2026/nov/06/global-stocks-tumble-ai-panic-markets-democrats-midterms-success-jobs-oil-dollar-latest-news-updates) (The Guardian AI, 2026-11-06)
3. [Asian AI and Chip Stocks Tumble on US Data-Center Fears](https://unite.ai/asian-ai-and-chip-stocks-tumble-on-us-data-center-fears) (Unite.AI, 2026-11-06)
4. [Asian tech stocks plunge amid fears US Democrats may delay data centers; Taiwan's Taiex sees a record intraday point drop, Kospi falls 8.7%, and Nikkei 6.7%](https://asia.nikkei.com/business/markets/taiwan-stocks-in-steepest-ever-fall-south-korea-halts-trading-amid-ai-rout) (asia.nikkei.com, 2026-11-06)
5. [Jim Cramer says the AI sell-off isn't over, but it isn't another dot-com crash](https://cnbc.com/2026/11/05/jim-cramer-ai-stocks-sell-off.html) (CNBC Technology, 2026-11-05)
6. [AI Stock Crash I won't try to time the rebound! Why I am holding onto NVIDIA and AMD](https://note.com/sekai_kabu/n/n9263a92dc174?hl=en) (note.com, 2026-11-05)
7. [Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses](https://theguardian.com/business/2026/nov/05/nasdaq-heading-for-worst-day-in-18-months-as-wall-street-sustains-widespread-losses) (The Guardian AI, 2026-11-05)
8. [Jim Cramer says the AI trade is not going away as Nasdaq enters correction](https://cnbc.com/investingclub/2026/11/05/cramer-says-the-ai-trade-is-not-going-away-as-nasdaq-enters-correction.html) (CNBC Technology, 2026-11-05)
9. [Nvidia, Micron, and other AI stocks take a dive after elections](https://finance.yahoo.com/markets/stocks/articles/nvidia-micron-other-ai-stocks-193247910.html) (finance.yahoo.com, 2026-11-05)
10. [Nvidia (NVDA) Stock: Plunge 7.55% as Washington Sparks Fresh AI Sell-Off](https://blockonomi.com/nvidia-nvda-stock-plunge-7-55-as-washington-sparks-fresh-ai-sell-off) (blockonomi.com, 2026-11-05)
11. [Nvidia Stocks Fall 6% as AI Expansion Risks Hit Chipmakers](https://finance.yahoo.com/technology/ai/articles/nvidia-stocks-fall-6-ai-180242797.html) (finance.yahoo.com, 2026-11-05)
12. [AMD Tumbles 13%, NVIDIA Slides 7% as AI Regulation Fears Hit Chip Stocks; Intel Sinks 8%](https://247wallst.com/investing/2026/11/05/amd-tumbles-13-nvidia-slides-7-as-ai-regulation-fears-hit-chip-stocks-intel-sinks-8) (247wallst.com, 2026-11-05)
13. [Nvidia Stock Plunges Nearly 8% in Steepest Drop Since April 2025 as AI Chip Rout Erases 1,000 Nasdaq Points](https://ibtimes.com.au/nvidia-shares-ai-semiconductor-stock-selloff-1877991) (ibtimes.com.au, 2026-11-05)
14. [OpenAI and Anthropic IPOs, volatility in markets after blue wave](https://finance.yahoo.com/video/openai-and-anthropic-ipos-volatility-in-markets-after-blue-wave-225100688.html) (finance.yahoo.com, 2026-11-05)

## Cite

Digest AI, "AI hardware stocks fall 6% to 21% as midterm results raise construction delays", 5 November 2026, https://digestai.news/story/ai-hardware-stocks-fall-6-to-21-as-midterm-results-raise-construction

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