AI stocks slide on Wall Street after midterm data center backlash

Tech and artificial intelligence stocks tumbled on Wall Street on Thursday amid concerns over the future of AI data center projects following the US midterm elections, wiping out gains from a post-election rally the day before.

The tech-heavy Nasdaq was down more than 5 percent late morning, with chipmakers bearing the brunt of the sell-off.

Industry giant Nvidia fell about 9 percent, while its competitor AMD dropped 17 percent and memory chip maker Micron lost 17 percent.
The three companies supply the processors and memory that power AI data centers, and the massive buildout of those facilities by tech giants has been a key driver of their revenue growth in recent years.

Data centers have faced broad opposition from US voters regardless of political affiliation, and many midterm winners have pledged to put the brakes on such projects, for example by imposing moratoriums on new buildouts.

AFP

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