Nov. 5 (Reuters) - U.S. stocks surged on Wednesday after Democrats won the midterm elections, but investors pulled out of tech stocks for a second consecutive trading day. The Nasdaq Composite plunged 3.3% on Thursday, the S&P 500 fell 1.9%, and the Dow Jones Industrial Average dropped 489 points, or 0.9%. Gains in stocks such as Chevron and Johnson & Johnson were not enough to offset the drag on the Dow from the tech selloff. AI-related stocks, particularly in the chip sector and data center-related shares, fell for a second straight day: AMD dropped 12%, Micron Technology fell 9%, SK Hynix declined 8.8%, Nvidia fell 5%, and the Philadelphia Semiconductor Index tumbled 8%, hitting its lowest level since April 20. The Nasdaq has fallen more than 10% from its record closing high on Oct. 6. Investors worry that Democratic control of both chambers of Congress and wins in key gubernatorial races could lead to more regulation of AI infrastructure construction across the United States. Jordan Watson, portfolio manager at Tandem Investment Advisors, said the stock market rally and the trend of capital fleeing AI stocks may be only temporary, but the market could face more volatility as investors digest the election results and their potential policy implications.