US chip stocks plunge in broad selloff, Nasdaq drops over 5.5%

On November 5, 2026, US stocks fell sharply as chip and AI-related shares faced heavy selling. The Nasdaq Composite dropped 5.52% to 24,315, while the Dow fell 3.44% and the S&P 500 fell 4.36%. The Philadelphia Semiconductor Index slid 12.25%, its largest single-day drop since March 2020. Nvidia, Intel, AMD, Micron and other chip stocks fell more than 9%. Market analysts linked the selloff to concerns over US AI industrial policy after the midterm elections, including a Texas governor-elect's call to suspend data center development.