Tech stocks plunge as investors fear AI slowdown and stricter regulation

Stocks tumbled sharply on Thursday after a post-midterm rally, with the Nasdaq dropping about 5 percent and the Dow falling 1,600 points, as investors feared a slowdown in data center construction and AI industry growth. Chipmakers like Nvidia and Qualcomm were hit hard, with investors anticipating stricter AI regulation from Democrats taking power in January. A post from Bernie Sanders calling for a national data center moratorium may have also fueled investor fears. Tesla and SpaceX shares dropped for a second day amid potential regulatory pressure. Analysts noted that incoming Democratic governors, many of whom oppose data centers, could be key deciders on future construction projects.