Chip Stocks Fall for a Second Day Following Qualcomm and US Market Slides

Chip stocks extended losses for a second consecutive session on Thursday, November 5, 2026, as investors reacted to political shifts and disappointing corporate earnings. Market pressures weighed heavily across the sector, with multiple industry leaders sliding in pre-market trading.

The downturn followed recent political outcomes where Democrats won control of Congress. According to Reuters, market participants expressed concerns over potential stricter regulations and growing public opposition to the rapid expansion of data centers in key states. UBS strategists indicated that approximately 30 percent of anticipated data center additions for 2028 are now at risk of being impacted.

Qualcomm experienced a notable decline after reporting that its phone chip sales fell 26 percent, missing Wall Street expectations due to sluggish demand and reduced business from Apple. Despite an overall earnings beat, Qualcomm shares slid alongside broad industry losses. Other major semiconductor companies, including Nvidia, Marvell Technology, Intel, SK hynix, and Arm, also recorded declines.

Data center infrastructure providers faced similar downward pressure. CoreWeave and Nebius dropped over three percent in early trading, while server manufacturers Dell and HPE also recorded losses. In contrast, major technology giants such as Amazon, Meta, and Alphabet moved upward, as analysts noted that a slower artificial intelligence infrastructure build-out was perceived as beneficial to their broader operations.

Chip stocks fell for a second day as Qualcomm slid and market pressures grew following political shifts.

Corporate results drove significant movements outside the semiconductor sector. MNTN plunged over 41 percent after cutting its annual revenue forecast due to internal execution challenges in its sales team and naming a new chief executive. Conversely, TrueBlue surged over 31 percent following quarterly revenue and profit figures that exceeded internal expectations, while AppLovin climbed after beating profit estimates.

In international markets, the selling pressure continued overnight in Asia. South Korea's Kospi index closed down 5.28 percent, with memory chip manufacturer SK hynix falling 9.03 percent in Seoul amid investor concerns over potential legislative limits on data centers. Meanwhile, Chinese technology stocks performed differently, with Alibaba and Tencent rising in Hong Kong trading.

Why it matters

The ongoing decline in chip stocks and data center equipment providers reflects growing regulatory and political uncertainties surrounding the rapid expansion of artificial intelligence infrastructure. For global investors and industry participants, these shifts signal potential delays or increased operational hurdles for future technology deployments.

While the primary market movements are concentrated in Western and East Asian exchanges, supply chain dependencies mean fluctuations in semiconductor manufacturing and memory chip production can influence broader electronics pricing and technology development timelines worldwide.