- Global semiconductor stocks fell sharply for a second consecutive day
- PHLX Semiconductor Index dropped nearly 6% amid widespread selling
- Dow Jones U.S. Semiconductors Index declined over 5.2% on heavy losses
Wall Street's semiconductor selloff deepened for a second consecutive session on Thursday, November 5, with chipmakers extending losses as investors reassessed the outlook for artificial intelligence infrastructure spending.
Advanced Micro Devices (AMD) led the decline, tumbling 10.83% to $435.84 in early trading. SK Hynix fell 7.98% to $131.66, while Micron Technology dropped 6.53% to $743.29. Intel lost 5.85%, Broadcom declined 4.49%, and Nvidia slipped 7.54%, according to market data captured shortly after the opening bell. Nvidia also continued its decline to 7.85% as of 10:25 a.m GMT, marking its biggest drop since April 2025.
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The selling followed a sharp divergence in Wednesday's market performance. While major US indices rallied after the Democrats' sweeping midterm election victory, semiconductor and AI infrastructure stocks moved in the opposite direction.
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The Philadelphia Semiconductor Index fell 5.96% to 9,656.69 in Thursday's early session, extending its previous decline. The Nasdaq Composite was down 1.69% at 25,300.98.
Also Read | US Stock Market Today: Dow Spikes 330 Points Post-Midterm Rally; Nasdaq Down 3%
A major concern is the potential impact of the election outcome on data-centre expansion. Democrats made gains in states where opposition to large data-centre projects has been growing. Investors are weighing the possibility of tighter restrictions, delays and higher hurdles for new facilities.
Such developments could affect demand for chips, servers, networking equipment and other AI infrastructure. UBS strategists estimated that around 30% of expected 2028 data-centre additions could face disruption from potential construction pauses.
Qualcomm's nearly 14% decline added another source of weakness. The chipmaker plunged after its smartphone-chip sales outlook missed Wall Street expectations, reflecting sluggish demand and declining Apple-related revenue. Its results reinforced concerns that semiconductor companies face demand risks beyond the AI market.
Also Read | Qualcomm Shares Sinks 14% At Open, Set For Worst Day Since 2020
For chip stocks, the immediate challenge is that valuations have been built around sustained AI spending and rapid demand growth. Any indication that data-centre construction could slow is prompting investors to reassess those expectations. Thursday's losses show that the sector has yet to find a floor.
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