AI Stock Sell-Off Wipes US$2.5 Trillion: Bursa Impact

Quick Answer: The AI stock sell-off pushed the tech-heavy Nasdaq into a correction, with a fall of around 12% over the past month wiping US$2.5 trillion from Nasdaq companies alone. The selling reflects fears that debt-funded AI data centre spending, which contributed 30% of US growth in 2025 and 2026, could slow. For Malaysian shareholders, the impact runs through sentiment, borrowing costs and the Anthropic IPO, because the AFP report names no Bursa-listed company.

Why Did the AI Stock Sell-Off Wipe Out US$2.5 Trillion?

AI stock sell-off hits Nasdaq stock market trading screens — Stock market trading, where the AI stock sell-off hit tech shares

The tech-heavy Nasdaq index has officially entered a correction, falling around 12% over the past month. That wiped US$2.5 trillion in market valuation for Nasdaq companies alone.

Heavy selling on Wall Street on Thursday followed the Democratic wave in this week’s midterm elections. Investors feared a regulatory crackdown on AI infrastructure.

How Big Is AI Data Centre Spending in the US Economy?

Data centre outlays contributed 30% of US growth in 2025 and 2026, according to Bruno Cavalier, economist at Oddo BHF. Spending on data centres surged 150%.

Power sources, intensive cooling systems and construction, plumbing and electrical work all bring money and jobs to local communities. Opposition is building over air pollution, higher energy costs, water use and noise.

Who Is Exposed if US Stock Prices Keep Falling?

Cavalier said 43% of US household wealth is now exposed to the stock market, up 10 percentage points from 2000. Retirees face the most direct hit to their spending power.

Alexandre Baradez of IG France said the richest 10% of Americans now account for half of consumer spending. They own the most stocks and gained the most from tech rallies, so a market crisis could curb their spending too.

Why Do Higher Interest Rates Hurt AI Borrowers?

Rising rates lift borrowing costs on the billions of dollars of debt AI firms have taken on to build data centres. Baradez said there is little chance of any easing moves soon by central banks.

Tighter financial conditions could make investors wary of putting in more money. Analysts note that the same pressure could push some investors to cut sector exposure.

Will Regulation Slow AI Data Centre Construction?

Kevin Thozet of Carmignac said markets are pricing in the risk that Democratic victories in the states with the most projects will make construction more expensive and longer to complete. Jacques-Aurelien Marcireau of Stilgar expects no general halt, saying Democrats will be pragmatic.

Marcireau added that a slowdown ‘could even be healthy, by halting the most vulnerable projects’. Investors may want to watch which projects fall into that category.

Can Anthropic Still Raise US$100 Billion in Its IPO?

Claude-maker Anthropic had reportedly been looking to raise US$100 billion this month, which could have valued it at up to US$2 trillion. It may now have to settle for less.

Rival OpenAI has already pushed back its IPO plans to sometime next year. Baradez said, ‘Anthropic will be the big test.’ Readers following the offering can compare tools in AI Stock Analysis for Malaysians.

What Does This Mean for Bursa Malaysia Investors?

The AFP report names no Bursa-listed company, so no local share prices or earnings can be drawn from it. The channel to watch is global tech sentiment and the pricing of the Anthropic IPO.

Individuals pay no capital gains tax on shares listed on Bursa Malaysia. Bursa trades settle on T+2.

Key Takeaways

Nasdaq entered a correction after a roughly 12% fall over the past month, wiping US$2.5 trillion in value.
AI data centre spending contributed 30% of US growth in 2025 and 2026.
43% of US household wealth is exposed to the stock market.
Anthropic may have to settle for less than its targeted US$100 billion raise.

Frequently Asked Questions

What caused the AI stock sell-off on Wall Street?

Heavy selling on Thursday followed Democratic victories in the midterm elections, which raised fears of a regulatory crackdown. Rising interest rates and heavy debt-funded AI spending added to the pressure.

How much has the Nasdaq fallen in the AI stock sell-off?

The Nasdaq fell around 12% over the past month and is officially in a correction. That wiped US$2.5 trillion from Nasdaq companies alone.

Will the AI stock sell-off affect Bursa Malaysia stocks?

The AFP report names no Bursa-listed company, so it gives no local figures. Any impact would come through global tech sentiment rather than direct exposure.

How much was Anthropic trying to raise in its IPO?

Anthropic had reportedly been looking to raise US$100 billion this month, at a valuation of up to US$2 trillion. It may now have to settle for less, and OpenAI has pushed its IPO plans to sometime next year.

📊 On AI Stock Terminal: IMPACT quarterly results · IMPACT announcements

Disclaimer: This article is for information only and is not investment advice. Do your own research before making any decision. Figures are from the AFP report carried by MalayMail.

Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.