Kathmandu: Shares of major technology companies across the world have suffered sharp losses as investor concerns over the expansion and future development of artificial intelligence (AI) intensified following the US midterm elections.
Hundreds of billions of dollars have been wiped off the combined market value of leading technology companies in the United States and Asia.
Investors are believed to have become increasingly cautious following electoral victories by Democratic candidates who have advocated greater regulation or slower expansion of AI technology.
In particular, concerns that restrictions could be imposed on the construction and expansion of data centres, which are essential for AI operations, have put additional pressure on technology stocks.
The technology-heavy Nasdaq Composite Index fell by more than 5.5 percent. According to Dow Jones data cited in the report, the decline wiped out approximately $2.5 trillion in total market value from US-listed companies.
Other major US stock market indices also recorded significant losses, making it the worst trading day since 2025.
Investors had already been concerned that generating expected returns from the billions of dollars being poured into AI development could take longer than anticipated. The possibility of political and regulatory obstacles to AI infrastructure expansion further intensified selling pressure.
The sharp decline in US markets has also affected stock exchanges across Asia.
In early trading on Friday, Japan’s benchmark Nikkei 225 index fell by more than 5 percent.
Shares of Japanese technology companies also recorded substantial losses. Panasonic dropped by more than 10 percent, while Hitachi declined by around 8 percent.
South Korea’s stock market witnessed an even sharper downturn. The benchmark KOSPI index fell by more than 8.5 percent.
Shares of chipmaker SK Hynix plunged by more than 11.5 percent, while Samsung Electronics lost approximately 10 percent.
Democratic candidates in several US electoral districts had made the uncontrolled expansion of data centres and AI infrastructure a key campaign issue.
Dozens of proposals aimed at regulating or restricting data centre construction and expansion were included in ballots across the country. These proposals sought to introduce restrictions or stricter regulations on the construction of large-scale data centres required to operate AI systems.
Investors fear that obstacles to data centre development could undermine the business prospects of companies investing heavily in AI technology and slow the sector’s growth.
Data centres are critical to the development and operation of AI systems, requiring substantial investment in computing capacity, electricity and supporting infrastructure. Any restrictions on their expansion could therefore affect the future growth expectations of major technology companies.
Following the sharp market downturn, US President Donald Trump criticised voters and the Democratic Party.
In a post on his social media platform, Truth Social, Trump blamed the electoral success of Democratic candidates for the stock market’s decline.
Referring sarcastically to Democrats as ‘Doomocrats’, Trump wrote:
“Because the Doomocrats had such a big victory on Tuesday, the Stock Market CRASHED today. So sad to see, you can only blame yourselves!”
Trump’s remarks indicate that the market downturn has also triggered political accusations and counter-accusations in the United States.
However, the decline in technology stocks reflects a combination of concerns, including uncertainty over AI investment returns, infrastructure expansion, regulatory risks and broader market sentiment.
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