AI stocks lose $2 trillion after Democrats win US midterms

A sweeping Democratic victory in the US midterm elections triggered a severe stock market selloff in the artificial intelligence industry, erasing nearly $2.5 trillion in value overnight. The Nasdaq fell up to 6% as investors feared new congressional oversight of the sector. The losses, the worst since April 2025, were driven by the defeat of Silicon Valley-backed candidates and growing investor skepticism about AI companies' massive spending on data centers and chips. Bank of America warned markets are moving "toward a situation more like a bubble," with 14 major AI firms losing a combined $1.94 trillion in market capitalization. Micron Technology, AMD, and Dell suffered the steepest declines, falling 17.46%, 17.26%, and 14.89% respectively. Nvidia lost approximately $447.5 billion, while Elon Musk's Tesla and SpaceX dropped 10.77% and 9.05%, reflecting both AI doubts and political setbacks.