News
The day at a glance · 3 min read
Mood · Risk-Off
-72
Sentiment, −100 to +100
Market Value Lost
$2 trillion
Nasdaq Decline
5.5%-5.5%
GPU Rental Prices
+106%+106%
Key driverRegulatory concerns following Democratic midterm victory triggered historic selloff in AI and semiconductor stocks
Daily briefTech Sector· Money365.Market AI ·

Tech Selloff Erases $2T as AI Stocks Tumble

Semiconductors lead decline after Democrats take Congress; Asian chip stocks crash overnight before U.S. futures rebound

Tech Market Devastation

Bearish
INTCNVDAAMD
01
The stock market lost $2 trillion in 40 minutes, with AI stocks bearing the brunt of the selloff.
02INTC
Intel ($INTC) declined more than half since October, while the Nasdaq fell 5.5% as the sell-off spread far beyond AI infrastructure. The Democratic Party won control of both the House of Representatives and the Senate in midterm elections, triggering investor concerns about increased AI regulation and potential constraints on data center buildouts.
03
U.S. chip stocks rebounded in premarket trading Friday, recovering some ground after the sweeping AI-driven selloff that followed the Democrats' midterm election victory. Despite the brutal reset representing the worst U.S. chip sell-off since 2020, GPU rental prices rose 106%, signaling continued fundamental demand strength even as investors questioned regulatory headwinds.

Asian Semiconductor Collapse

Bearish

SK Hynix Decline

11.7%-11.7%

Samsung Drop

10%-10%

Taiwan Chips

8%-8%
01
SK Hynix, which supplies memory for the world's top AI chips, lost 11.7% of its value in Seoul trading Friday before most Americans woke up.
02
Samsung Electronics fell nearly 10% in the same session as the Asian semiconductor sector experienced a sharp overnight decline.
03
Taiwan chip stocks fell more than 8% as the selloff reverberated across Asian markets. The collapse in Asian chip equities preceded U.S. premarket trading, where Nasdaq futures later pointed higher, suggesting potential stabilization.

AI Infrastructure Race Intensifies

Neutral
AMZNGOOGLMSFT
01AMZN
Major technology players including Amazon ($AMZN), Google ($GOOGL), and Microsoft ($MSFT) have committed substantial capital to next-generation data center accelerators as the global race for AI infrastructure supremacy intensifies. Surging demand for AI, machine learning, and data-intensive workloads is driving a shift from traditional CPU-based architectures to advanced accelerators like GPUs, TPUs, FPGAs, and ASICs.
02
A forced slowdown on AI spending could prove beneficial for hyperscalers and enable them to shore up their balance sheets following the midterm results. The Democratic Congress may impose greater scrutiny on data center buildouts, potentially moderating the pace of infrastructure expansion.

Data Center Component Demand

Bullish

Q4 Revenue

$424.8M+62.7%

Adj EPS

$2.09
01MTSI
MACOM Technology Solutions ($MTSI) reported fiscal fourth-quarter revenue of $424.8 million, up 62.7% from a year earlier, as demand for data center products helped drive record backlog and higher profitability. Adjusted earnings per diluted share rose to $2.09 from $1.40 in the preceding quarter, demonstrating strong operational leverage in the data center component market despite broader sector volatility.

ETF Flows Signal Positioning

Neutral

Amazon ETF Inflows

$105.1M

AMD ETF Inflows

$43.3M

SOXX Gross Buying

$513.3M
01AMZN
ETFs bought $105.1 million of Amazon ($AMZN) shares on Wednesday, with 66 funds adding positions while 22 trimmed. ETFs purchased $43.3 million in Advanced Micro Devices ($AMD) shares, with 53 funds adding to positions despite the subsequent selloff.
02NVDA
The iShares PHLX SOX Semi Sector Index Fund conducted $513.3 million in gross trading that was entirely buys, lifting 28 positions with no decreases and adding both AMD and Nvidia ($NVDA). SPDR Portfolio S&P 500 Growth added $239.6 million in new buying across 151 positions, led by a $29.8 million increase in Nvidia ($NVDA).
03NOW
ETFs sold a net $29.5 million of ServiceNow ($NOW) and a net $16.9 million of Palantir ($PLTR) on Wednesday, signaling rotation away from high-valuation software names. The iShares Expanded Tech-Software fund, with $12.41 billion in assets, bought $105.8 million of Oracle while selling $10.0 million of Microsoft ($MSFT) and $9.2 million of Palo Alto Networks.

Consumer Platform Earnings

Bullish

Premarket Move

+10%+10%
01ABNB
Airbnb ($ABNB) reported stronger-than-expected third-quarter financial results, supported by accelerating travel demand, higher booking volumes and improved pricing. The accommodation platform delivered its fastest revenue growth in more than three years and raised its full-year outlook, sending its shares more than 10% higher in premarket trading Friday.

Important Disclaimer — Not Investment Advice

Disclaimer: This article is provided by Money365.Market for general information and educational purposes only. It is not financial advice, a personal recommendation, or an inducement to buy, sell, or invest in any security or product. Capital is at risk and the value of investments can go down as well as up; past performance does not indicate future results. You should seek independent advice from an FCA-authorised adviser before making any financial decision.

Read the full disclaimer — 8 further points, including total-loss risk, our regulatory status and conflicts of interest

Nothing here is an offer or a solicitation to buy or sell anything, and reading it creates no advisory or fiduciary relationship between you and Money365.Market. Any decision you take is your own.

  • You can lose money — including all of it. Individual companies can and do fail, and some of the assets discussed can fall to zero. Only commit money you can afford to lose, and never borrow to invest on the strength of anything you read here.
  • Forecasts are opinion, not fact. Any valuation model, scenario, fair-value range, estimate or other forward-looking statement is illustrative, rests on assumptions that may prove wrong, and is never a price target, a forecast of actual outcomes, or a promise of any return.
  • Published at a point in time. Figures were believed accurate on the publication or last-updated date shown above and are not maintained afterwards; we are under no obligation to update them. Market and company data comes from third-party sources and is provided without warranty of accuracy, completeness or timeliness.
  • Automated content. This brief was compiled by an automated pipeline from validated news and market-data sources and passed through editorial and compliance checks. Automated content can still contain errors — verify anything you intend to rely on.
  • We are not regulated. Money365.Market is not authorised or regulated by the UK Financial Conduct Authority, is not registered with the U.S. Securities and Exchange Commission or FINRA as an investment adviser or broker-dealer, and is not a tax adviser. We hold no licence to give personal financial advice and do not do so.
  • Interests and independence. Money365.Market is not affiliated with, endorsed by or sponsored by any company, fund, exchange or platform mentioned, and is not paid to feature them. The author may hold positions in securities or assets discussed. The site earns revenue from advertising, subscriptions and, where labelled, affiliate links; this does not influence what we publish.
  • Your jurisdiction matters. Tax treatment, contribution limits, product availability and investor protections differ by country and can change. Speak to a qualified tax professional for tax matters, and to a locally licensed adviser if you are outside the UK.

Full terms: Disclaimer · Terms of Service · Privacy Policy