New YorkNvidia fell 6%, AMD 12% and Micron 11% on Thursday.

Midterm winners pledged moratoriums on the AI data centres these three chipmakers supply.

The Philadelphia Semiconductor Index dropped more than 8%, and the Nasdaq Composite fell over 5% before paring losses.

IG analyst Chris Beauchamp warned: “If this goes south, this market action turns from rotation to general panic.”

Democrats take control of Congress in January, when the pledged data centre moratoriums face their first test.

How each outlet framed it
Dawn leans critical
ties the chip sell-off to midterm winners' pledges of data-centre moratoriums, quoting IG's Beauchamp on the new Congress

Sources: Dawn