Technology stocks suffered another sharp selloff on November 5, 2026, as investors questioned the economics of the AI infrastructure boom and the pace at which new data centers can actually be built.
The Nasdaq was down 3.09% at 9:57 a.m. Eastern, according to Reuters, putting the index on course for correction territory. Semiconductor stocks led the retreat, with the sector index down 7.1% at that point. Qualcomm dropped roughly 9% following a weaker smartphone-chip sales outlook. Later reporting from the Associated Press put Nvidia down 6.3%, AMD down 13.1%, and CoreWeave down 10%. These are intraday figures, not final closing prices.
The immediate catalyst was concern that Democratic midterm election victories could bring more scrutiny of electricity costs and data-center construction. UBS strategists estimated that roughly 30% of expected 2028 data-center additions could be affected by delays. That estimate is a risk scenario, not confirmation that projects have been canceled.
But the deeper problem predates the election. Alphabet, Meta, Amazon and other hyperscalers have committed enormous amounts of capital to AI computing infrastructure. Investors increasingly want evidence that the spending can translate into sustainable cash flow. In late October, Reuters reported that more than $2 trillion in market value was on course to be erased from the Nasdaq 100 during the month amid concerns over AI spending and borrowing costs.
The market is also differentiating between AI suppliers and customers. Delays in data-center construction can immediately hurt the revenue expectations of chipmakers, server vendors, power-equipment suppliers and specialized cloud operators. For major software and cloud platforms, slower capital expenditure could in some circumstances preserve cash, even as it constrains growth opportunities.
Qualcomm’s disappointing smartphone-chip outlook added a separate concern: weakness in conventional semiconductor demand. Meanwhile, elevated oil prices linked to the Middle East conflict, persistent inflation and expectations of tighter monetary policy have made long-duration growth valuations harder to defend.
Does this mean AI demand is collapsing? Not necessarily. Strong demand for computing capacity can coexist with overoptimistic share prices, strained financing models and delays in bringing capacity online. A correction in the stocks of AI suppliers is not the same as a contraction in AI usage.
The central question is whether the current selloff is a valuation reset or the beginning of downward revisions to infrastructure spending and semiconductor earnings. Investors should watch hyperscaler capital-expenditure guidance, data-center permitting and power constraints, financing costs, and Nvidia’s upcoming results. AI may continue to grow rapidly without delivering the investment returns previously assumed in every stock exposed to the boom.
