US Semiconductor Stocks Rebound After Midterm Election Sell-Off
US chip stocks recovered Friday after a massive sell-off triggered by fears that Democratic midterm victories would lead to stricter data center regulations.
U.S. semiconductor stocks rebounded on Friday, November 6, 2026, following a severe sell-off on Thursday that erased approximately $2.5 trillion from the Nasdaq Composite. The initial rout marked the sector's worst decline since 2020, driven by investor fears that a sweeping Democratic victory in the midterm elections would result in stricter regulations and blocked data center projects.
Advanced Micro Devices led the recovery with gains between 8% and 11.2%, while Nvidia and Intel climbed approximately 5% to 6%. Other gains were seen in Micron Technology, Lam Research, and Applied Materials. The volatility extended globally, causing the South Korean Kospi to suffer its worst day since 2025 and hitting firms such as Samsung Electronics and SoftBank in Japan.
Political tension centered on data center expansion, specifically in Texas, where Governor-elect Gina Hinojosa called for a halt to construction until protections for residents are established. In contrast, President Donald Trump expressed support for the development of super intelligence.
Friday's recovery was supported by a strong October jobs report from the Bureau of Labor Statistics, which showed 165,000 new jobs and a decrease in the unemployment rate to 4.1%. Despite the bounce, analysts warn that the AI trade remains vulnerable to further volatility as political uncertainty regarding data center construction persists.
