Nasdaq Enters Correction as Nvidia, Broadcom, Qualcomm Collapse One Day After Election Rally

The Quick Take

• The Nasdaq slid into correction territory one day after the post-election rally as a sharp reversal hit tech stocks
• Chip giants including Nvidia, Broadcom, Qualcomm, SK Hynix, and Sandisk all recorded significant declines
• Post-election euphoria proved short-lived as valuation concerns and profit-taking overwhelmed buying momentum

Wall Street's technology sector suffered a sharp reversal one day after the midterm election-driven rally, with the Nasdaq Composite entering correction territory. The sell-off concentrated in semiconductor and AI infrastructure stocks — Nvidia, Broadcom, Qualcomm, SK Hynix, and Sandisk all recorded significant declines. The election-day surge that preceded this reversal had been driven by expectations that divided government would reduce regulatory risk for tech, but follow-through buying failed to materialize as investors took profits and broader risk-off sentiment from bond markets reasserted itself after the initial euphoria subsided.

For Nvidia in particular, any correction triggers ripple effects across the entire AI infrastructure ecosystem — cloud capex commitments from Amazon, Microsoft, and Google are priced in Nvidia's forward P/E multiple, and a de-rating of the semiconductor leader reprices the whole AI investment thesis. Broadcom's concurrent decline reflects similar concerns about data center interconnect and custom ASIC demand assumptions. Qualcomm's simultaneous drop adds a smartphone and mobile processing angle, suggesting the sell-off was broad-based across chip applications rather than targeted at specific AI-exposed names.

Watch for Nvidia's next quarterly earnings guidance as the definitive reset of AI infrastructure capex expectations — any softening in datacenter revenue guidance would validate the correction as fundamentals-driven rather than purely technical. The key forward signal is the NDX/SPX ratio, which measures tech's valuation premium over the broader market; continued compression signals structural de-rating across the sector. The macro variable is the 10-year US Treasury yield — elevated nominal yields compress high-multiple tech valuations by increasing the discount rate applied to long-duration AI earnings projections.

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