Democratic Midterm Win Bursts Wall Street's AI Bubble

lemonde.fr (French) [$] —

The Democratic victory in the US midterm elections burst the artificial intelligence bubble, with the Nasdaq falling over 5% on Thursday, November 5. The decline reflects growing distrust toward AI and data center stocks. The previous day's gains proved misleading, as indices rose on political certainty and rebounds from Amazon, Microsoft, and Google. However, Intel's poor results signaled weakening chip demand, triggering a broader selloff in technology shares. The downturn also hit "picks and shovels" suppliers like cooling and connectivity firms, which had profited from AI-driven demand. Their high valuations now face correction as market sentiment shifts.


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