US Markets Suffer Historic AI-Led Selloff, Chip Stocks Lose Over $1 Trillion in a Day
US markets saw a massive sell-off on November 5, with AI and semiconductor stocks hit hardest: the Nasdaq Composite plunged 5.52% in a single day, its worst performance since April 2025, and total market value wiped out across various estimates ranged from $2 trillion to $3.8 trillion. Social Capital data showed chipmakers alone lost $1.15 trillion, with Nvidia accounting for $447 billion. The current takeaway: this was a systemic correction centered on the AI supply chain, with most AI-related stocks now in a technical bear market, though no fundamentals-based inflection point has been confirmed—capital expenditure and policy trends warrant continued attention.
Confirmed
- The Nasdaq Composite fell 5.52% on November 5 (@rohanpaulai); the Nasdaq 100 dropped 6.4% in a day, erasing $2.3 trillion (@himanshustwts citing Walter DeItaone); the S&P 500 fell 1% within 10 minutes of the open, wiping out roughly $700 billion (@CuriusExplorer reposting a news flash)
- Individual stocks: Nvidia fell between 7% and 9.3% depending on the source (closing at $185.20, down 7.46%), AMD roughly 13.85%15.34%, Micron roughly 12.93%14.4%, Tesla 5.92%11.5%, Broadcom 4.66%7.51%, Nebius down 17.02% (@danielmac8, @GaryMarcus, @Zachly, and others)
- CoreWeave hit a 52-week low, approaching its IPO price; Nvidia's 9.3% single-day drop erased all gains since 2026 (@GaryMarcus, @rohanpaulai)
- The "Magnificent Seven" lost about $1.1 trillion combined in a day—the largest single-day loss since April 2025 and the second largest in history (@ditzikow citing Walter Bloomberg)
- Per Kobeissi Letter tallies (@teodorio), many tech stocks are in bear-market territory: SanDisk -66%, Arm -64%, Coinbase -63%, Nebius -62%, Seagate -60%, Marvell -59%, Nvidia -25%
- Goldman Sachs revoked access to Claude Code and GitHub Copilot from traders and bankers, restricting use to engineers only (@jaydeepkarale)
Not yet confirmed
- Multiple unverified explanations for the crash: @op7418 pointed to policy uncertainty from the election outcome; @bookwormengr relayed Wall Street sell-side views that AI capex growth may peak in 2027, compounded by Fed tightening uncertainty; other news flashes such as m2 gave no reason
- Posts cite varying totals for the single-day wipeout ($1.3 trillion to $3.8 trillion); these should be read as intraday versus closing figures at different times and scopes, not contradictory facts
Why it matters
- This is the sharpest sector-level pullback since the AI boom began, directly testing market confidence in returns on hundreds of billions of dollars in AI infrastructure spending: @GaryMarcus called it "reckoning day for the AI industry" and noted Elon Musk's net worth shrank by $110 billion
- With compute-rental providers like CoreWeave nearing their IPO prices, the market has begun repricing the AI compute business model
- Goldman restricting AI coding tools to engineering roles is read as a signal of shifting corporate attitudes toward the AI productivity narrative
- @op7418 raised the question of whether Anthropic will still pursue its IPO amid current market sentiment; @TiernanRayTech offered a historical perspective: NVDA once fell 60% and then rose more than 10x, so a short-term plunge doesn't necessarily end the long-term trend
2026-11-05 ~ 2026-11-06 · 21 related posts
- Episode 1: Gary Marcus and Sabine Hossenfelder Clash Over Whether the AI Bubble Is Bursting(2026-11-03, 6 posts)
- Episode 2: Gary Marcus Warns AI Bubble Deflating as Futures and Chip Stocks Fall(2026-11-04, 3 posts)
- Episode 3: Gary Marcus Claims 17/18 Predictions Right, Sparks Feud with Sabine Hossenfelder(2026-11-04, 7 posts)
- Episode 4: US Markets Suffer Historic AI-Led Selloff, Chip Stocks Lose Over $1 Trillion in a Day(2026-11-05, 21 posts)
- Episode 5: Gary Marcus: Market Panic Stems from Tech Firms Facing Accountability(2026-11-06, 2 posts)
Primary sources
- CoreWeave Shares Hit 52-Week Low as AI Compute Leasing Stocks Slip — GaryMarcus · 2026-11-05
- Trader stares at all-red tech screens as stocks plunge double digits — dejavucoder · 2026-11-05
- $1.3 Trillion Wiped From U.S. Tech Stocks at Market Open, Polymarket Reports — Polymarket · 2026-11-05
- AI and compute stocks crater: AMD -15%, Nebius -17%, Micron -14% in one day — GaryMarcus · 2026-11-05
- Gary Marcus: double-digit losses hit AI stocks, CoreWeave near IPO price — GaryMarcus · 2026-11-05
- US stocks wipe out $700B in 10 minutes as AMD drops -10.97% and NVDA -3.87% — CurieuxExplorer · 2026-11-06
- Magnificent Seven erase $1.1 trillion in one session as Nasdaq enters correction — ditzikow · 2026-11-06
- AI Stocks Wipe Out $2 Trillion in 30 Minutes as Sector Sells Off — op7418 · 2026-11-06
- $2 trillion wiped out in 30 minutes of trading, as Anthropic IPO plans hang in the balance — op7418 · 2026-11-06
- AI trade unwinds: Nvidia drops 7.46% to $185 as leveraged retail traders panic — Zachly · 2026-11-06
- Market bloodbath heatmap: NVDA -7%, AMD -13.85%, MU -12.93% — daniel_mac8 · 2026-11-06
- Tech Stocks in Bear Territory: SanDisk -66%, Arm -64%, Oracle -56%, Nvidia -25% — teodorio · 2026-11-06
- Tech bloodbath: AMD -15%, Micron -13%, Nvidia -7.9% in broad AI selloff — prasannaalahoti · 2026-11-06
- Goldman pulls Claude Code and Copilot from traders as US stocks see record $2.8T wipeout — _jaydeepkarale · 2026-11-06
- [source] Analysts see AI capex growth peaking in 2027; Nvidia drops 9%, CoreWeave yields hit 17% — bookwormengr · 2026-11-06
- Nasdaq 100 sinks 6.4%, wiping out $2.3 trillion in market value — AI circles joke through the panic — himanshustwts · 2026-11-06
- Tech rout: TL20 down 19% in a week; author says NVDA fell 60% before rising 1,062% — TiernanRayTech · 2026-11-06
- [source] Nasdaq sheds $3.2tn in worst day since April 2025 as Nvidia sinks 9.3% on data center fears — rohanpaul_ai · 2026-11-06
- [source] US stocks lost $3.8T in a day; chipmakers took $1.15T of the hit — CharlieMuirhead · 2026-11-06
- AI stocks sink as Gary Marcus mocks Musk's 'money won't matter' prophecy — GaryMarcus · 2026-11-06
- US Stocks Lose $3 Trillion in a Day; Nvidia -9.3% and Korea's Leveraged Retail on the Brink — churchkey · 2026-11-06