From Coinpedia · By Shubham Vishwakarma
Story HighlightsThe Nasdaq Composite fell around 3% on November 5, reversing much of Wednesday’s rally as technology and semiconductor stocks came under renewed selling pressure.
AI data-center concerns, rising infrastructure costs and Qualcomm’s weaker smartphone chip outlook triggered fresh concerns across the technology sector.
Investors are now watching Friday’s US jobs report for clues about interest rates, Treasury yields and the next direction for Nasdaq stocks.
The Nasdaq Composite is down today, November 5, as renewed selling in technology and semiconductor stocks erased much of Wall Street’s recent gains. The index dropped around 3%, with Nvidia, AMD and other AI-linked stocks facing pressure.
Advertisement Now, attention is shifting to Friday’s US jobs report, which could influence interest-rate expectations and determine whether technology stocks face another round of selling.
What’s Behind the Today Sell-Off
AI Data Center Concerns Put Technology Stocks Under Pressure
Growing uncertainty over US data-center expansion is emerging as a major reason behind the latest Nasdaq Composite decline. Following the US midterm elections, investors are assessing whether potential regulatory restrictions and local opposition could delay data-center projects. Concerns are particularly focused on the power, water and infrastructure requirements of large AI facilities.
UBS strategists estimated that nearly 30% of expected data-center additions in 2028 could face potential disruption. This has added another risk to an AI investment cycle already facing scrutiny over its rising costs.
Qualcomm Stock Plunges as Weak Chip Outlook Hits Semiconductor Stocks
Semiconductor stocks are among the biggest sources of pressure on the Nasdaq today, with Qualcomm’s latest outlook adding to concerns about chip demand.
Qualcomm shares fell around 10% in premarket trading after its forecast for smartphone chip sales missed Wall Street expectations. The company pointed to sluggish demand and declining revenue from Apple-related business as key challenges. The weakness also spread to other chipmakers. Nvidia, Marvell Technology and Intel traded lower, while AI infrastructure companies CoreWeave and Nebius also faced selling pressure.
Qualcomm’s outlook has raised questions about the broader semiconductor market, particularly as investors weigh weaker smartphone demand against the significant growth expectations already priced into AI-related stocks.
Big Tech AI Spending Raises Fresh Valuation Concerns
Another factor weighing on Nasdaq stocks is growing scrutiny of Big Tech’s aggressive artificial intelligence spending. Major technology companies are investing heavily in data centers, advanced processors, cloud infrastructure and networking systems to support AI development. These investments are creating opportunities across the technology sector, but they are also increasing capital expenditure requirements.