NVIDIA's market value evaporated by over $600 billion in two days; slowdown in data center construction causes panic in the U.S. stock market
The Block
1h ago
Ai Focus
On November 5th local time, many AI industry chain stocks in the US stock market tumbled. NVIDIA lost 12.14% in just two days, with its market value evaporating by $604.6 billion. The market is concerned that after the mid-term elections in the United States, AI regulations will become stricter and data center construction will slow down, which may affect the prospects of AI infrastructure providers and related companies.
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CBN News 2026-11-06 11:46:29 Listen to the news

Author: Zheng Xutong Editor-in-Chief: Liu Jia

On November 5th local time, many AI industry chain stocks in the US stock market tumbled. AI chip manufacturer NVIDIA ( NVDA.O ) fell by 9.26%. Including the decline from the previous trading day, NVIDIA lost 12.14% in two days, with its market value dropping by $604.6 billion (approximately 4 trillion yuan).

The latest quarterly financial report data and positive performance expectations of another AI chip stock AMD ( AMD.O ) did not provide sustained support for the stock price. Even though the company projected revenue growth of over 80% for next year on November 3, its stock price still tumbled by 17.26% on November 5, with a one-day market value loss of $138.3 billion. Tesla ( TSLA.O ), which is leading the chip manufacturing project TeraFab , saw its stock price fall by 10.77%.

In addition, on November 5th, AI Broadcom ( AVGO.O ) and Marvell ( MRVL.O ) fell by 10.43% and 16.43% respectively; memory chip manufacturers Micron Technology ( MU.O ) and SanDisk ( SNDK.O ) fell by 17.46% and 22.26% respectively; AI cloud computing company CoreWeave ( CRWV.O ) fell by 9.83%, and Oracle ( ORCL.N ) fell by 6.93%.

Behind the collective slump, the progress of the U.S. mid-term elections has amplified market concerns regarding a slowdown in the construction of AI data centers and stricter regulation of AI.

After multiple AI security incidents were successively reported at AI companies OpenAI and Anthropic in the United States, in September of this year, U.S. Senator Bernie Sanders Bernie Sanders announced that he would push for legislation known as the "Ban on Artificial Superintelligence Act." According to the draft, the act requires a suspension of all research and development processes for super AI, and individuals who violate it could face up to 20 years in prison. Subsequently, Asimine Ansari Yassamin Ansari from the Democratic Party proposed a House version of the related bill. After the Democrats secured a victory in the mid-term elections in the United States, Asimine Ansari posted on social media calling for a suspension of artificial intelligence development to be the top priority for the Democratic majority on their first day in office.

Data center construction projects in Texas, USA, may be among the first to be affected. Gina Inohosa ( Gina Hinojosa ), a Democrat who won the Texas governor election, is seen as a supporter of suspending data center construction and has expressed her desire to immediately implement a suspension order for data centers in the state. Her victory has further amplified concerns in the capital market regarding the progress of data center construction.

If the United States delays the construction of data centers, it will inevitably affect the revenue of AI infrastructure providers. In addition, Tesla, which is building a chip manufacturing project TeraFab in Texas, USA, as well as another company SpaceX under Musk that is constructing data centers in Texas and other places, have come under renewed scrutiny from the capital market. The combined market value of SpaceX and Tesla fell by over $330 billion on November 5th.

On November 2, Goldman Sachs significantly raised its forecast for global data center capacity in a research report, estimating that by 2030, global data center capacity will reach 273 gigawatts ( GW ), higher than the previous forecast of 217GW. Goldman Sachs particularly increased its forecast for data center capacity in the United States.

However, on November 5th, Goldman Sachs stated that the unexpected victory of the Democratic Party in the mid-term elections in the United States could have a significant impact on the regulatory environment for AI and the data center industry. It is estimated that this could affect about 45% of the planned data center capacity expansions in the U.S., with Texas accounting for 25% of that figure. Goldman Sachs noted that some of the American utility companies and power generation enterprises that supply electricity to data centers may face increased pressure as a result.

Related to data center construction, many domestic optical module manufacturers have overseas data center customers as their downstream clients. As of 10:38 on November 6th, in the A-share optical module sector, Zhongji Xuchuang (300308. SZ) fell by 6.99%, Xinyisheng (300502. SZ) fell by 5.65%, and Tianfu Communication (300394. SZ) fell by 3.47%.

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