U.S. artificial intelligence infrastructure stocks fell again on Thursday, Nov. 5, with losses spreading from data center builders to chipmakers, server companies and optical networking suppliers. Investors are weighing whether increased post-election scrutiny could slow new data center projects, while a weaker broader market added to selling pressure. Several AI infrastructure stocks had already dropped sharply on Wednesday, even as the S&P 500 rose; on Thursday morning, both the sector and the wider market were under pressure.
Nvidia, Dell and optical networking stocks slide
At about 9:55 a.m. ET on Thursday, Nvidia was down roughly 6% at $188.75, about twice its decline in the previous session. Dell fell around 9%, wiping about $20 billion from its market value. Arm Holdings dropped roughly 10%, also losing about $20 billion in market value. The S&P 500 was down approximately 1.5% at the time.
Other hardware and software companies also declined. Palantir Technologies, Hewlett Packard Enterprise and Celestica lost about 7% to 8%. Astera Labs, which supplies connectivity chips for AI hardware in data centers, fell around 11%. Modine, a data center cooling equipment maker, dropped another 9% after falling 21% on Wednesday.
Optical networking shares were among the hardest hit. Ciena fell about 11%, reducing its market value by roughly $4.3 billion. Applied Optoelectronics lost around 13%, while Coherent and MACOM Technology fell between 9% and 11%. These companies supply lasers and other equipment for fiber-optic networks, including links within data centers and across data transmission networks.
Engineering and construction companies tied to AI projects also fell for a second consecutive day. Comfort Systems USA and Argan each dropped about 9%, while MasTec fell roughly 8%. EMCOR and Dycom declined around 6% to 7%. Their exposure to data center and related infrastructure projects makes their business sensitive to changes in construction schedules.
Investors assess post-election permitting risks
Investors are concerned that election results could bring greater scrutiny of the data center industry. Governments at different levels have been discussing how to regulate construction, and Texas—one of the country’s major data center markets—has drawn particular attention. The state’s newly elected governor advocated a pause on new data center projects during the campaign.
UBS analysts estimate that, if construction pauses expand, nearly one-third of the additional U.S. data center capacity expected to come online by 2028 could be delayed or fail to be built. Delays could affect companies counting on new capacity to meet customer demand and support growth. But post-election political changes have not yet translated into specific policies: Congress does not change over until January, and any state-level pause would still need to be drafted and approved.
Viavi shares fall despite stronger results
Viavi Solutions’ results underscored how broadly market sentiment has shifted beyond individual company performance. The company reported quarterly revenue up 57% year over year to $469.3 million, raised its outlook and approved a $500 million share buyback. Yet its stock still fell as much as about 18% in early trading the following day.
The reaction suggests investors are reassessing the outlook for the wider AI infrastructure buildout. For now, strong results have not offset concerns about the timing of industry projects.
Bitcoin mining companies turned AI landlords also fall
Applied Digital, Core Scientific and Cipher Digital—companies with roots in bitcoin mining that now build or lease AI data centers—also declined. Applied Digital fell about 11%, while Core Scientific and Cipher Digital lost roughly 8% to 9%.
Bitcoin itself was down only about 1% at around 10 a.m. ET, indicating that the stocks’ early losses were not primarily driven by a drop in the cryptocurrency. As the broader market weakened, bitcoin’s decline widened to nearly 6% by about 11 a.m.
VanEck said bitcoin miners may have been caught in an excessive sell-off, pointing to their scarce access to grid connections and the possibility that customers seeking sites for AI facilities would pay a premium for it. Recent share-price swings also reflect investor attention to permitting, capital requirements and the time needed to complete projects. Customer contracts and financial positions vary from company to company.