Nvidia falls as chip stocks slide after Democratic midterm wins

Nvidia shares fell Wednesday amid a broad selloff in chip stocks after Democratic midterm victories raised concerns that data center construction could slow or become more expensive. Nvidia traded about 1.5% lower, while Micron fell over 5%, Intel dropped 3.7%, and Broadcom lost over 1%. The Philadelphia Semiconductor Index declined over 3%, even as broader markets rose, with the Dow gaining nearly 3% and the S&P 500 and Nasdaq each up about 1.8%. Democratic wins in Texas and Ohio, including Gina Hinojosa's gubernatorial victory in Texas, fueled worries about potential moratoriums on new data center projects, with Texas accounting for roughly 27% of planned US capacity. Analysts noted that political changes could delay up to 45% of planned US data center expansion, potentially tempering demand for Nvidia's AI-focused GPUs. However, some experts argued the slowdown may lead to a more measured rollout rather than derailing long-term AI growth, though higher construction costs could pressure profitability.