Tech stocks see biggest selloff since Covid as AI data center boom hits regulatory hurdles

Tech stocks suffered their largest selloff since the Covid era on Thursday, with the Nasdaq dropping 5.2% and losing over $3 trillion in market value, as investors reacted to midterm election results signaling a slowdown in the AI data center boom. The selloff followed voters approving measures to curtail data center construction, prompting analysts to predict capital expenditure growth will peak next year instead of 2028. Major companies like Nvidia fell 8%, while chipmakers Micron and AMD each dropped roughly 14%. Industry executives acknowledged new hurdles, with Meta's president noting hyperscalers may consider building outside the U.S. Analysts estimate up to 20% of planned AI data centers could face longer regulatory delays, particularly in Texas.