Tech executives defend AI growth after post-election sell-off

Technology and semiconductor stocks faced a sharp decline on Thursday, Nov. 5, 2026, as investors reacted to the results of the U.S. midterm elections. The Nasdaq 100 fell 5% to a five-month low during mid-morning trading, driven by concerns that a Democratic sweep of Congress could lead to stricter regulations on data center construction and a potential slowdown in infrastructure spending.

The market volatility was further exacerbated by mixed earnings reports released by Arm and Qualcomm on the night of Wednesday, Nov. 4, 2026. Prior to the election, markets had shown sensitivity toward the high capital expenditures required for the ongoing artificial intelligence buildout, particularly as Democratic candidates had campaigned on pledges to restrict data center development in several states, including Texas, Ohio, Michigan, and Georgia.

Executives from OpenAI, Arm, and Qualcomm addressed the market concerns on Nov. 6, 2026, projecting optimism regarding the long-term growth of the sector. Arm CEO Rene Haas characterized the current apprehension surrounding data center investments as very short-term thinking, asserting that the United States must continue to build infrastructure to maintain a competitive advantage.

Qualcomm's CEO noted that the company's market position remains distinct from broader industry trends. Meanwhile, the OpenAI CFO sought to reassure investors by stating that the company will not raise electricity bills. As part of its response to the situation, OpenAI announced new responsible AI infrastructure policies, which include commitments to cover electricity and infrastructure costs for its facilities, alongside plans to address water usage and local job creation.