aichipslumpnasdaq

US stock futures open Sunday evening after a damaging week for AI stocks. The Nasdaq Composite fell 3.4% in the week to November 6, the S&P 500 lost 2.7%, the Dow slipped 0.9% and the small-cap Russell 2000 shed 2.05%, according to Investor’s Business Daily.
Nasdaq 100 futures were indicated modestly lower after Nvidia’s board opened an investigation following reports that CEO Jensen Huang was targeted by a suspected Chinese espionage operation, according to IBD, CNBC and NBC News. Lawmakers from both parties have also raised questions about the reports, CNBC said.
AI Hardware Stocks Lead the Losses
After a post-election rally on Wednesday, when the Dow jumped 3%, AI infrastructure stocks fell sharply on Thursday and dragged down the wider market. Friday’s AI-led bounce faded into a mixed close.
Sandisk (SNDK) rose 3.55% to $835.06 on Friday but fell 27.4% on the week. It is down 64.5% from its late-June peak, according to MarketSurge.Micron (MU) gained 5.1% to $690 on Friday but dropped 22% on the week and is 45% below its high.
The VanEck Semiconductor ETF (SMH) fell 11.2% on the week and the iShares Expanded Tech-Software ETF (IGV) lost 5.2%.
Apple, Microsoft and Amazon Hold Up
Big tech held up better than the rest of the sector:
Amazon (AMZN) jumped 7.9% on the week to $259.30.Microsoft (MSFT) rose 1.7% to $530.62.Apple (AAPL) slipped 0.7% to $342.37.
Microsoft and Amazon rallied Wednesday as investors bet that existing data center operators could gain if rivals’ projects are delayed, according to IBD.
Oil Falls 12.8% as Yields Hit Two-Month Low
US crude futures fell 12.8% on the week to $90.83 a barrel, pressured by hopes for US–Iran diplomacy, according to IBD. President Donald Trump told CNN that renewed US strikes on Iran are “highly unlikely” if talks progress. The Energy Select SPDR ETF (XLE) fell 12%.
The 10-year Treasury yield fell 7 basis points to 4.86%, a two-month low.
Some sectors gained. The US Global Jets ETF (JETS) rose 6.6%, homebuilders gained 1.3% and financials 1.15%.
Berkshire Posts Record Buyback
Berkshire Hathaway bought back $9.6 billion of its own shares in the third quarter, up from $4.5 billion in Q2. That beat its previous record of $9.3 billion, set in Q3 2020.
Operating earnings: fell 6% to $12.7 billion, roughly in line with estimates, as weaker insurance underwriting and investment income weighed. Railroad, utility and other operations improved.Revenue: rose 11% to $105.6 billion, above estimates of $100.96 billion.Cash: rose to $377.4 billion from $365.5 billion in Q2, but remains below Q1’s $397.4 billion.Stock portfolio: Berkshire sold a net $400 million or so of stocks in Q3, after net purchases of about $20 billion in Q2.
Berkshire stock has risen for five straight weeks and hit a record high on Thursday. Under new CEO Greg Abel, the company has largely kept Warren Buffett’s conglomerate-and-investment approach.
Indexes Below Key Moving Averages
All major indexes are below their 50-day moving averages, and the Nasdaq and Russell 2000 are also below their 200-day lines, according to IBD. IBD’s Ed Carson said one weak bounce is not enough to signal a market bottom, and that investors should be defensive and wait for clear evidence of a turnaround.

#AIChipSlumpNasdaq
## 🔍 Introduction
For more than a year, AI chip stocks were the engine of Wall Street. Nvidia, Micron, AMD and other semiconductor names carried the Nasdaq to record after record. 🚀 Then, in early November 2026, the mood flipped fast. Chip stocks were hit hard, and the Nasdaq went down with them. 😨
## 💥 What Happened This Week?
The Nasdaq Composite fell about 4% on Thursday, 5 November, ending roughly 10% below the previous month's record close, which put it in correction territory. Micron and AMD each dropped about 16%, Nvidia lost around 8%, and the VIX fear gauge rose above 22. 📊
One market tracker estimated that twelve AI-linked stocks lost about $930 billion in combined market value within the first minutes of that session. That figure is the tracker's own arithmetic, but it shows how concentrated the losses were in a handful of giant companies. 🏢
Reports also described this as a second day of heavy chip selling, coming right after the US midterm elections. 🗳️ Gold and silver rallied on a weaker dollar, and OpenAI pledged to cover data center power costs after midterm voters rejected rapid AI expansion. ⚡
## 🧠 Why Are AI Chip Stocks Falling?
Several pressures are stacking up at once:
- 💰 **Sky-high valuations:** Chip stocks had been the biggest winners of the AI trade, so even small disappointments trigger big selling.
- 🏗️ **Doubts about AI spending:** Tech giants have committed billions to AI infrastructure, but clear evidence that AI products can earn returns to justify that spending is still elusive.
- 📈 **Rising rates and inflation fears:** In June, the Nasdaq fell 4.2% in one session after a strong jobs report pushed bond yields up, making AI spending more expensive. Higher yields hurt growth stocks.
- 🇨🇳 **New competition:** In July, a report said China's DeepSeek was developing its own AI chip, which could reduce its dependence on Nvidia and Huawei.
- 🏛️ **Politics:** Public and political pushback against fast AI expansion adds a new risk that markets did not price in before.
## 🕰️ This Is Not the First Wobble
The November drop follows a pattern. Chip stocks sold off in June and again in July, when mounting doubts about the sustainability of the AI-driven rally dragged the Nasdaq lower. Each time, buyers stepped in and the rally resumed. This time the damage is bigger, and the Nasdaq has now crossed the 10% correction line. 📉
## 🔄 The Bull and Bear Views
🐂 **The bull case:** Corrections are normal after a huge run. Earlier this year Morgan Stanley argued that chip weakness could mean market gains are broadening to other areas, with investors turning to AI hyperscalers. 🌱 Demand for data centers and memory chips has not disappeared.
🐻 **The bear case:** One research firm warned that the shakeout in AI-related stocks "has much further to run." If AI spending slows or profits disappoint, valuations could fall further. ⚠️
## 🛡️ What Should Investors Do?
1. 🧘 **Don't panic sell.** Big single-day drops often reverse partly, but not always.
2. 🎯 **Check your concentration.** If most of your portfolio is Nvidia, Micron and AMD, a 10% to 16% daily fall hurts a lot.
3. 🧩 **Diversify.** Mixing sectors, and keeping some cash, reduces the damage from one theme cracking.
4. 📅 **Watch the next catalysts:** Interest rates, inflation data, earnings from big AI spenders, and any new policy on AI.
5. 🚫 **Avoid leverage.** Volatile sectors can liquidate leveraged positions fast.
## 🔮 Conclusion
The AI chip slump is a reminder that even the strongest trends move in waves. 🌊 The long-term AI story is far from over, but markets are now asking tougher questions about profits, power costs and politics. The next few weeks will show whether this is a healthy reset or the start of a deeper fall. Stay informed, stay disciplined and manage risk. 💪
⚠️ *This article is for education only and is not financial advice. Please do your own research.*
**:** #AIChips 💻 #Nasdaq 📉 #Nvidia 🟩 #StockMarket 📊 #TechSelloff 🔻
Sources:
- [Nasdaq plunges 4% into correction as AI chip stocks get hammered](https://zeli.app/story/50381623)
- [Nvidia Leads $930B Drop in 12 AI Stocks](https://fourweekmba.com/ai-nvidia-leads-930b-drop-in-12-ai-stocks-by-10-04-a-m-et/)
- [Chips sector bloodbath drags Nasdaq down 4.2% (Axios)](https://axios.com/2026/06/05/stocks-nasdaq-tech-stocks)
- [Nasdaq sinks as AI worries hit chipmakers (Reuters via StreetInsider)](https://www.streetinsider.com/General+News/Nasdaq+sinks+as+AI+worries+hit+chipmakers/26737604.html)
- [Chip stocks plunge, but bargain-hunters limit scale of tech rout](https://www.galvnews.com/eedition/page-b2/page_152ad582-e535-5789-87fd-83914f788618.html)#US Data Center Rules May Constrain AI Expansion #CPITestsDecemberRateOutlook #JobsReportRaisesHikeOdds #TetherPlans€28.8MForJuventusCapitalIncrease

• The OI Resiliency Trap: Total perpetual Open Interest sits at $328 billion, falling a mere 0.6% over 24 hours. While a standard leverage flush usually causes a sharp drop in OI as positions close out, this minor dip indicates that new traders stepped in to buy the dip, or existing longs stubbornly remargined. The risk has not been fully reset.
• The 3,200% $BTC Volatility Jump: Bitcoin-specific liquidations surged by over 3,200% compared to the prior day. This exponential spike proves that traders were radically underprepared for a downside move, caught off-guard by an exceptionally crowded trade.
• Imbalanced Funding Rates: Prior to the crash, over 75% of accounts across BTC, ETH, and $SOL were aggressively long. Funding rates were heavily positive (longs paying shorts), creating an expensive, unsustainable "holding fee" for bulls that amplified the pressure to sell when prices stalled.
The root cause of the crypto flush originated in legacy markets, reinforcing cryptocurrency's current status as a high-beta risk asset:
• US Tech & AI Bleed: A 5.5% drop in the Nasdaq dragged down speculative tech growth stocks, directly souring institutional appetite for crypto.
• Negative ETF Outflows: Spot Bitcoin ETF flows flipped net-negative, choking off the continuous institutional spot buying pressure that typically absorbs derivatives liquidations.
• Fragile Base Sentiment: The Crypto Fear and Greed Index was firmly pinned in "Fear" before the event, meaning spot markets lacked the organic, confident bidding power to stop the leverage-induced bleeding.
Forward-Looking Risk Assessment & What to Watch
The market is currently in a fragile equilibrium. To determine whether this event was a healthy leverage reset or the first leg of a structural bear trend, monitor these three specific pillars:
• Funding Rate Normalization: Look for funding rates to flatten out toward 0%. If funding rates rapidly spike back into highly positive territory while prices remain stagnant, it indicates unyielding, dangerous long speculation is returning.
• OI Composition Shift: Watch BTC and $ETH Open Interest rebuilds alongside a more balanced long-to-short ratio. A healthier market requires short-sellers to provide a two-sided liquidity cushion.
• Legacy Market Stabilization: Crypto cannot sustainably recover until the Nasdaq finds a structural floor and spot ETF flows flip back to net-positive inflows over a sustained 3-to-5 day moving average.
#BitcoinFiveWeeklyLosses #AIChipSlumpNasdaq #BinanceReopensWithdrawalsForHYPE&APT #SouthKoreaDraftLawTargets15To20%ShareholderCap #TradFiForBeginners