Following the conclusion of the U.S. midterm elections, the technology sector quickly felt the market shock brought about by the changing political landscape.

As Democrats won control of both chambers of Congress, investors began to worry that tighter approvals for data center construction could disrupt artificial intelligence infrastructure expansion plans, putting pressure on the valuations of chipmakers, computing power suppliers, and related companies.

On Thursday, shares of companies closely tied to AI infrastructure, including NVIDIA (NVDA), SpaceX (SPCX), and Oracle (ORCL), fell sharply.

NVIDIA closed down 9.3%, its largest single-day drop since January 2025; SpaceX fell 9%, and Oracle dropped 6.9%.

This selloff also dealt a massive blow to the fortunes of tech billionaires.

According to the Bloomberg Billionaires Index, NVIDIA CEO Jensen Huang saw his personal net worth shrink by $15.1 billion in a single day to $150.9 billion, falling from 9th to 13th on the global rich list and dropping out of the top ten.

AI Policy Concerns Hit Chip Stocks, Huang Loses $15.1 Billion in One Day

Jensen Huang was not the only tech billionaire affected.

SpaceX founder Elon Musk and Oracle co-founder Larry Ellison saw their fortunes shrink by $79.7 billion and $10.1 billion respectively on Thursday.

On Thursday, the 500 wealthiest people tracked by the Bloomberg Billionaires Index collectively lost $185 billion.

This marks the 14th-largest single-day wealth loss since Bloomberg launched the index in 2012.

The selloff is closely linked to the Democratic Party's victory in the midterm elections.

Investors expect that Democrats, having regained control of the House and Senate, may take measures to restrict data center construction, which is the critical infrastructure on which AI industry expansion depends.

The three billionaires who suffered losses all have business interests highly tied to this sector.

Headquartered in Santa Clara, California, NVIDIA is a leading supplier of high-performance computing chips.

As AI demand grows, the continued expansion of data center construction drives demand for its chip products.

Musk's SpaceX is developing its own artificial intelligence models and building the data centers needed to run them.

Ellison's Oracle has already established a massive computing power supply business, providing computing capacity to other enterprises.

Therefore, changes in the outlook for data center construction not only affect infrastructure developers but may also transmit through supply chains and capital expenditure expectations to chipmakers and computing service providers.

This wealth retreat comes after what was originally expected to be a historic year for tech billionaires.

With the AI industry continuing to grow rapidly, tech billionaires' wealth once accounted for 36% of the total wealth on the Bloomberg Billionaires Index.

Musk's Wealth Shrinks by About $90 Billion in a Week, SpaceX and Tesla Market Value Evaporates by $456 Billion

Compared to Huang, Musk faces pressure not only from AI industry regulatory expectations.

His political spending, his close relationship with the Trump administration, and the possibility of a new round of congressional investigations into his companies are also entering investors' risk assessments.

On Thursday, shares of SpaceX and Tesla (TSLA.O) fell about 9% and 11% respectively.

As of Thursday's close, the combined market value of the two companies had shrunk by about $456 billion in the two days following the midterm elections.

According to Forbes, Musk's personal fortune once exceeded $1 trillion after SpaceX's IPO in June, but has now fallen below $800 billion.

Over the past week, his wealth has shrunk by about $90 billion.

Nevertheless, Musk remains the world's richest person.

In this midterm election cycle, Musk was the largest donor to Republican candidates and related political activities, contributing more than $470 million, a figure first reported by the Financial Times.

But the massive spending did not help most of the candidates he supported win their races.

Democrats ultimately regained control of both chambers of Congress, and in Texas, where Tesla and SpaceX are headquartered, Democrats also achieved important victories.

Texas Governor-elect Gina Hinojosa defeated incumbent Republican Governor Greg Abbott.

Deutsche Bank analysts said in a report on Wednesday: "Although the policy direction itself is difficult to predict, we believe that in such a political environment, SpaceX may face some additional headwinds."

The analysts specifically mentioned Hinojosa's stance on data center construction.

She has previously called for a moratorium on approving new data center projects until the state legislature passes stricter protective measures.

The related measures involve data center water usage, electricity costs, local autonomy, and corporate incentives.

Hinojosa has also criticized the tax breaks enjoyed by large data center projects.

Texas Terafab Project Faces Approval Risks, SpaceX May Face More Investigations

Policy changes in Texas are particularly important for Musk's companies.

Both Tesla and SpaceX are expanding their AI infrastructure footprint in the state and plan to build the massive Terafab project there.

This large facility will include a data center and a sprawling semiconductor factory, located in Grimes County, Texas.

SpaceX also plans to build a "supercomputer" at its Starbase launch site and company town in Texas.

According to job postings published by the company, this computing buildout plan has already entered the talent recruitment phase.

Deutsche Bank analysts warned that SpaceX's computing construction in Texas could face delays.

To meet what the market expects to be stricter data center regulatory requirements, the company may also need to increase capital expenditure.

This means that regulatory measures pushed by Democrats may not only affect new project approvals but also change the cost and timing of companies' existing investment plans.

The political and regulatory pressure facing Musk's companies is not limited to data centers.

CNN was first to report that Musk and SpaceX have been asked to preserve records related to restrictions on the military version of the Starlink satellite internet service in Ukraine.

The report, citing an aide to a Democratic senator, said these restrictions weakened Ukraine's ability to defend against Russian attacks.

In addition, congressional oversight and regulatory scrutiny could also affect Musk's vision of merging SpaceX with Tesla.

Musk has previously proposed this merger plan but also acknowledged that any such transaction would first require shareholder approval.

With Democrats back in control of Congress, his companies may face more investigations and scrutiny, and the merger plan could encounter additional obstacles.

From the sharp drop in NVIDIA's stock price and the shrinkage of Huang's wealth to the massive evaporation of SpaceX and Tesla's market value, tech billionaires are bearing the market shock following the midterm elections.

Previously, investors mainly focused on how much profit AI demand growth could bring to chip and computing companies.

Now, data center approvals, local government regulation, government contracts, and corporate political relationships are also becoming important factors affecting these companies' valuations.