Nvidia stock falls as chip selloff follows Democratic election wins

Nvidia's stock fell Wednesday amid a broader semiconductor selloff after Democratic election wins raised concerns that US data center construction could slow or become more expensive. Nvidia dropped about 1.5%, while the Philadelphia Semiconductor Index fell over 3%. Other chipmakers also declined, with Micron down over 5%, Intel falling 3.7%, and Broadcom losing more than 1%. Meanwhile, broader markets rose, with the Dow gaining nearly 3% and the S&P 500 and Nasdaq up about 1.8% each. Democratic victories in Texas and Ohio, including governor races, fueled worries about potential moratoriums on data center projects. Analysts noted that Texas, representing about 27% of planned US data center capacity, and Ohio face heightened regulatory risk. Goldman Sachs estimated that political changes could affect roughly 45% of planned capacity expansion, potentially slowing demand for Nvidia's AI-focused GPUs, though some experts see this as a delay rather than a halt to long-term growth.