Nasdaq Drops 3% as Qualcomm Craters and AI Data-Center Doubts Creep In

Tech couldn't hold the line. The Nasdaq Composite slid about 3% on Wednesday, November 5, wiping out a chunk of Wall Street's recent run as selling hammered semiconductors and AI-linked names. Nvidia, AMD and their peers took the brunt, with the pain rippling across the whole tech-heavy index.

Qualcomm led the wreckage, dropping roughly 10% in premarket trading after its forecast for smartphone chip sales landed below what Wall Street wanted. The company blamed soft demand and shrinking revenue tied to its Apple business. The chill spread fast: Nvidia, Marvell Technology and Intel all traded lower, and AI infrastructure players CoreWeave and Nebius got hit too.

Then there's the data-center problem nobody priced in. According to UBS strategists, nearly 30% of expected data-center additions in 2028 could face disruption, as investors digest potential regulatory restrictions and local pushback following the US midterm elections. The sticking points are unglamorous but real: power, water and infrastructure demands of massive AI facilities. That's a fresh risk layered onto an AI investment cycle already under the microscope for its ballooning costs.

Speaking of costs, Big Tech's spending spree is drawing harder stares. Companies are pouring money into data centers, advanced processors, cloud infrastructure and networking gear to feed AI development. The question investors keep asking: can the returns justify the tab? If AI revenue growth lags the infrastructure buildout, margins, cash flow and valuations could feel it — especially for chipmakers and data-center operators banking on nonstop expansion.

All eyes now turn to Friday's October US jobs report. Economists expect roughly 65,000 jobs added, with unemployment forecast at 4.2%, and wage growth under close watch for inflation signals. The print could move Treasury yields and shape expectations for the Federal Reserve's next move — and rate-sensitive tech will be listening closely.

The near-term scorecard comes down to three things: how chip stocks trade, how fast data-center investment actually moves, and where Treasury yields go. A moderate jobs number might calm nerves. Stronger hiring or hotter wages could reignite rate worries and keep the pressure squarely on the Nasdaq.