AI stocks lose $2.5 trillion in US election selloff

A sweeping Democratic victory in US legislative elections triggered a severe stock market selloff in the artificial intelligence sector, erasing nearly $2.5 trillion in value overnight and sending the Nasdaq down 6%. The defeat of Silicon Valley-backed candidates and fears of new congressional oversight fueled the decline, the worst since April 2025. Investor skepticism over massive AI spending on data centers and chips also contributed, with Bank of America warning of a potential bubble. Leading AI companies suffered heavy losses, with Micron, AMD, and Dell dropping up to 17%. The "Magnificent Seven" lost over $1 trillion combined, while Nvidia alone shed roughly $447.5 billion in market capitalization.