US tech stocks lose $2.5 trillion after Democratic midterm wins

US tech companies lost $2.5 trillion in market value on the Nasdaq after Democratic victories in the November 3 midterm elections, raising concerns about AI investment profitability and stricter regulations on data centers. The sell-off, reported by the Wall Street Journal, was driven by fears that Democratic control of Congress will slow data center expansion, alongside doubts about AI returns and high corporate debt. Nvidia fell 9.3%, while Tesla and AMD dropped roughly 9% and 17.3%, respectively. Silicon Valley billionaires, including Elon Musk who donated over $474 million to Republican causes, saw their favored candidates defeated. Democrats also won key state races, with Texas electing officials who support restrictions on data center construction, adding to investor uncertainty.