AI chip stocks plunge after U.S. midterms trigger global market selloff

Shares of major AI chipmakers plunged following the U.S. midterm elections, as concerns over tighter AI regulation fueled a selloff across global markets, Reuters reported.

The selloff began on Wall Street before spreading to Asian markets, as investors worried that Democratic gains in the elections could lead to tougher oversight of artificial intelligence and slow investment in the sector.

Japan's Nikkei index fell 6%, its steepest one-day decline since April 2025. Shares of major semiconductor companies, including TSMC, Samsung Electronics and SK Hynix, also suffered heavy losses, falling by as much as 6% to 10% during trading.

In the United States, the Nasdaq dropped 5.5%, while companies in the S&P 500 lost approximately $3 trillion in market value. Margin calls and forced selling added to the pressure as the downturn accelerated.

Investors are concerned that changes in U.S. policy could slow the construction of new data centers, weakening demand for AI infrastructure and affecting Asian semiconductor suppliers. Some analysts, however, cautioned that the market reaction may have been excessive.

Authorities in Taiwan and South Korea have already taken steps to stabilize their markets. Meanwhile, investors have shifted toward government bonds in the United States and Asia in search of safer assets.