Global tech stocks plunge as US midterms add to AI slowdown fears

Trillions of dollars has been wiped off the stock value of major tech firms in the US, Europe and Asia in a market rout after the US midterm elections sparked concerns of a slowdown in artificial intelligence (AI) development.

Shares in firms across the tech sector plummeted following Democratic wins after election campaigns run on slowing AI.

The tech-heavy Nasdaq composite index closed down by more than 5.5% on Thursday, losing an estimated $2.5tn (£1.9tn) in market value, according to Dow Jones data, while other key US stock indexes also saw big losses in their worst days since 2025.

The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off.

In Asia, tech-heavy indexes fell sharply on Friday morning as firms that make the computer chips and other equipment that power AI saw their shares slide.

The Nikkei 225 in Japan was 6.3% lower in the afternoon as shares in memory chip maker Kioxia lost almost 11.5% and rival Tokyo Electron slipped by 5.8%.

South Korean chipmaker SK Hynix fell by more than 8.8%, while Samsung was down by around 6%.

The sell-off in Seoul sent the Kospi index plunging more than 8% in morning trading, triggering a so-called circuit breaker, a mechanism that temporarily halts trading to curb panic selling. The Kospi was around 5% lower in the afternoon.