Global tech stocks tumble as blue wave is felt in Asia and Europe

South Korea’s Kospi index tumbled more than 8%, triggering a temporary market-wide trading halt. There, AI data center memory suppliers Samsung and SK Hynix plunged more than 10% in the early hours, before recovering some of their losses. Japan’s Nikkei 225 index fell as much as 6%, entering bear-market territory.

In Taiwan, home to some of the most critical AI companies, including chip supplier TSMC, the benchmark TAIEX index dropped 9%.

London’s FTSE 100 index fell by 1.6% on Friday open, while the French and German indices, CAC40 and DAX, took similar hits.

“Markets are being punished according to their dependence on the U.S. AI infrastructure cycle,” Charu Chanana, Chief Investment Strategist at Singapore-based SAXO Markets, told NBC News in emailed comments.

The companies in Taiwan, South Korea and Japan are “clearly highly linked to the global AI capex cycle and hence I am not surprised to see the magnitude of correction today following the sharp correction in the U.S.,” Tai Hui, J.P. Morgan’s APAC Chief Market Strategist, told NBC News in emailed comments.

The plunge came after the stunning midterm results that will see the rise of a crop of anti-AI and anti-data center politicians, including Gov.-elect Gina Hinojosa in Texas, the largest data center market in the country.

A Democratic Congress could tighten scrutiny of the industry, including AI infrastructure projects, which could cause delays and additional costs, adding to worries investors have about the profitability of these investments.

Recent months have been nothing short of a rollercoaster for Asian investors, who saw their paper fortunes grow by magnitudes in June during the AI stock boom, but have been suffering from a brutal recent sell-off.