In a single day, the value of AI-related assets dropped by 3.2 trillion US dollars; Nvidia’s stock price fell by more than 9%, and Huang Renxun dropped out of the top ten list of the world’s richest people.

After the results of the mid-term elections were announced, the AI sector in the U.S. stock market suffered a significant blow. On Wall Street, the market value of companies in this sector decreased by approximately $3.2 trillion in a single day.

On Thursday, Nvidia’s shares tumbled by more than 9%. Jian Huang’s personal net wealth decreased by $15.1 billion, falling to $150.9 billion. As a result, he dropped from ninth place to thirteenth on the Bloomberg Billionaires Index and no longer ranked within the top ten.

It was Musk who saw the largest decline in his wealth—on that day, his fortune decreased by $79.7 billion, and the previous day it had already dropped by $33.5 billion. In total, these two losses amounted to over $100 billion, causing his net worth to fall below $800 billion. Ellison of Oracle also saw a reduction in his wealth by $10.1 billion.

The logic of the market is straightforward. The Democratic Party achieved a decisive victory in the mid-term elections, and exit polls revealed that American voters have very clear objections to AI and data centers: 76% of them oppose the construction of data centers in their local communities.

In the past two years, data center capital expenditures have been the main driving force behind the development of the AI industry. If the approval process at the local level slows down, the allocation of electricity costs encounters difficulties, or the progress of various projects is hindered, the growth rate of chip orders will inevitably be affected. In such circumstances, it is essential to act promptly and secure the necessary funds first.

This decline also indicates that AI stocks currently have virtually no buffer against political risks. Valuations are based on the assumption of continuous smooth progress; any setback can lead to a revaluation of these stocks.

In the coming weeks, what deserves more attention than stock prices is the capital expenditure plans of several cloud service providers. As long as they don’t change their statements, the logic behind the demand for chips will remain valid.