US Tech Stocks Plunge as AI and Chip Sectors Shed Trillions in Market Value
On November 5-6, US tech stocks suffered a rare plunge, with the AI and chip sectors hit hardest. According to Polymarket's official feed, tech stocks lost over $1.3 trillion in market value at the open on November 5, and the sell-off intensified on November 6.
Confirmed
- Multiple sources reported progressively larger losses: the S&P 500 fell about 1% within 10 minutes of the open, wiping out roughly $700 billion (m2); blogger op7418 reported that AI-related stocks lost about $2 trillion in market value within the first 30 minutes (m4, m10); Social Capital data showed the entire market lost $3.8 trillion for the day, with chipmakers accounting for $1.15 trillion of that—chip stocks represent just 12% of total market cap but bore 30% of the decline, and Nvidia alone lost $447 billion (m5)
- Individual stock declines: Nvidia fell as much as 8.5% intraday and closed down about 7.05%-7.9%; AMD fell 13.85%-15%; Micron fell 12.93%-14%; Tesla fell 9.82%-11.5%; Broadcom, Microsoft, Google, Amazon, Meta and others broadly declined (m2, m3, m6, m9)
- According to a Walter Bloomberg flash report, the "Magnificent Seven" lost a combined $1.1 trillion in a single day—the largest one-day market cap loss since April 2025 and the second largest in history—with the Nasdaq entering correction territory and Tesla leading the decline (m12); the Nasdaq 100 fell 6.4% in a day, erasing $2.3 trillion (m7)
- According to Kobeissi Letter, a large number of tech stocks have already entered bear-market territory: SanDisk -66%, Arm -64%, Coinbase -63%, Nebius -62%, Seagate -60%, Marvell -59%, Nvidia -25%, and more (m8)
- Tiernan Ray (The Technology Letter) noted that tech stocks fell for two straight days with the Nasdaq down about 4-5% cumulatively over the two sessions; his TL20 portfolio dropped more than 11% in a day and 19% for the week (m11)
Unconfirmed
- There is no consensus on the cause of the plunge: op7418 attributed it to policy uncertainty from the election outcome (m4), while multiple posts reflected market concerns that tech giants' hundreds of billions in AI infrastructure spending may not pay off (m3). Tiernan Ray mentioned that tech stocks fell for two straight days after Democrats swept the midterms (m11), but no detailed causal chain was given in the post
Why it matters
- This was a rare concentrated sell-off in the tech sector since the AI boom began, with chip stocks bearing losses far exceeding their market cap weight, directly shaking market confidence in returns on AI infrastructure investment
- Gary Marcus reshared news of the plunge and mocked Musk (whose net worth shrank by $110 billion), revealing the divided public opinion inside and outside the AI community over the input-output debate of this cycle (m3); op7418 raised the question of whether Anthropic would still push ahead with its IPO plans given such market sentiment (m10)
2026-11-05 ~ 2026-11-06 · 12 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: AI and Compute Stocks Slump in One-Day Selloff, CoreWeave Hits 52-Week Low(2026-11-05, 7 posts)
- Episode 5: US Tech Stocks Plunge as AI and Chip Sectors Shed Trillions in Market Value(2026-11-05, 12 posts)
- Episode 6: Gary Marcus: Market Panic Stems from Tech Firms Facing Accountability(2026-11-06, 2 posts)
Primary sources
- [source] $1.3 Trillion Wiped From U.S. Tech Stocks at Market Open, Polymarket Reports — Polymarket · 2026-11-05
- US stocks wipe out $700B in 10 minutes as AMD drops -10.97% and NVDA -3.87% — CurieuxExplorer · 2026-11-06
- [source] 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
- 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
- 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] 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