Analysis: The counter-trend decline in the storage and semiconductor sectors is due to heightened regulatory concerns from the Democratic Party, rather than deteriorating demand.

BlockBeats news, November 5 - As US stocks rebounded sharply today, the storage and semiconductor sectors bucked the trend and fell significantly:

The Philadelphia Semiconductor Index extended its decline to 5%. Marvell Technology Group (MRVL.O) fell over 9%, Micron Technology (MU.O) fell over 6%, Intel (INTC.O) fell over 5%, and Nvidia (NVDA.O) and Broadcom (AVGO.O) fell over 2%.

Seagate Technology (STX) fell 6.82%; Western Digital (WDC) fell 5.54%; SanDisk (SNDK) fell 8.20%; SK Hynix ADR (SKHY) fell 4.77%.

Analysts believe that after the Democratic sweep of Congress, investors are concerned about increased regulation, approval restrictions, and heightened local opposition to AI data center construction in the future, which could slow infrastructure pace and short-term suppress related stock prices.

SK Hynix, Samsung, Micron, and others recently emphasized in financial reports/guidance strong AI demand, sold-out HBM and server products, and high profit margins. Institutions (such as JPMorgan, TrendForce, etc.) also believe fundamentals are solid, prices still have upward space in 2027, and the overall market size has been significantly revised upward. There is no substantial slowdown on the demand side; AI remains the absolute main line, and the logic of shortage and price increases remains intact. The recent decline in semiconductor and storage stocks is more a market emotional reaction to the sustainability of AI capital expenditures, financing pressures, valuation corrections, and post-election regulatory risks, rather than a deterioration in demand itself.