Tech stocks tumble globally amid US midterm election AI regulation fears

Asian technology stocks plunged on Friday following Wall Street losses driven by fears that a Democrat-controlled Congress will impose stricter AI industry regulations.

The Philadelphia Semiconductor Index fell roughly 16% this week, while key firms like SK hynix and Samsung saw share price drops of up to 10%.

Investors are reacting to political pledges to pause data center projects and concerns regarding the return on investments for multibillion-dollar AI infrastructure spending.