Nvidia, Dell plunge as AI selloff deepens on midterm worries

The selloff intensified Thursday after Democrats swept the midterm elections, with investors now pricing in the possibility of new restrictions on data-center construction. In Texas, one of the biggest data-center markets, the new governor-elect campaigned on pausing new construction, and UBS analysts estimate that if pauses spread, nearly a third of the new U.S. data-center capacity expected in 2028 could be delayed or lost. The fear is not confined to builders: optical-networking companies like Ciena fell about 11%, wiping out about $4.3 billion in value, and even Viavi Solutions crashed 18% despite reporting quarterly revenue up 57% to $469.3 million and approving a $500 million buyback. That divergence suggests the market is trading on political fear rather than individual business performance, punishing the companies most exposed to new construction the hardest while Nvidia's 6% drop looks modest by comparison. Some see value already: VanEck argues Bitcoin miners are oversold because their access to the power grid is scarce and commands a premium for AI customers. But with Congress not changing hands until January and any state-level pause still needing to be written and passed, the political risk remains unsettled, leaving long-term investors to weigh buying slowly in pieces against the volatility of these AI stocks.