U.S. stocks slide as AI infrastructure fears hit chipmakers

U.S. stocks fell sharply Thursday as investors reassessed the outlook for artificial intelligence infrastructure after Democratic gains in the midterm elections, with chipmakers among the hardest hit. The S&P 500 dropped 4.4%, the Nasdaq 100 fell 6.4% and the Philadelphia Semiconductor Index lost about 12%. Nvidia shares declined roughly 9%. The reports did not establish that the election had halted any data-center projects. The selloff followed a rally on Wednesday, when investors initially responded positively to the election results. By Thursday, attention had shifted to concerns that stronger political opposition or new oversight could slow data-center construction and curb spending on the chips and equipment used to support AI systems. Those concerns were cited by market participants; the results themselves do not establish that restrictions will be enacted. The Nasdaq 100 had fallen nearly 15% from its October 6 record, while the Nasdaq Composite was down nearly 12% from its October 6 record close. The declines added to questions about the scale of investment in AI and whether companies will earn sufficient returns from that spending. The election’s role in the selloff,...