On Thursday, November 5, semiconductor stocks plunged sharply, extending their recent losses. With Democrats performing strongly in the US midterm elections, investors began to question the outlook for the AI trading theme. The Philadelphia Stock Exchange Semiconductor Index fell 9.2%, on track for its largest one-day decline since June. It has dropped about 12% this week, and if that decline holds, it would mark the worst weekly performance since April 2025—a fifth consecutive weekly loss and the longest losing streak since April 2025. The selloff spread from chipmakers to other segments of the AI supply chain: storage device makers Western Digital and Seagate Technology both fell more than 14%, while "neocloud" companies CoreWeave and Nebius Group also saw sharp declines. Still, not all investors on Wall Street have lost faith in chipmakers. Deutsche Bank noted that compared with the software sector, semiconductors remain attractive, and the investment value of semiconductor stocks is still compelling.