U.S. Semiconductor Stocks Plunge Amid Data Center Regulation Concerns; Outlook for Samsung Electronics and SK hynix

On November 4, 2026 (local time), in the U.S. stock market, Nvidia shares fell 3.17%, while Micron plunged about 7%. The Philadelphia Semiconductor Index also fell 3.13%, noticeably weakening investor sentiment toward AI semiconductor stocks.

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It is also worth noting that this weakness spread beyond semiconductor stocks to companies involved in AI data center construction, power supply, and cooling equipment.

Meanwhile, Microsoft and Amazon rose about 6.7% and 6.1%, respectively. In other words, rather than a broad-based plunge across the U.S. market, it was a day when share prices diverged between AI infrastructure suppliers and major cloud companies.

Concerns about data center construction regulations, which grew after the November 3 midterm elections, have been cited as a factor behind weakness in U.S. semiconductor stocks.

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Texas governor-elect Gina Hinojosa has advocated a temporary pause on construction of new data centers. The central issues under discussion are the burden on the power grid, water use, and the impact on local residents' electricity bills.

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However, the governor-elect's proposal to pause new construction has not been enacted into law or fully implemented.

Separately, the Texas state government announced a distinct administrative action on September 21, 2026.

Governor Greg Abbott directed the Texas Commission on Environmental Quality (TCEQ) to pause data center-related permits. The action instructed relevant agencies not to proceed with related regulatory approvals until an audit by power grid operator ERCOT is completed and essential information is obtained on electricity and water use and their impacts.

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Therefore, completion of the power grid audit cannot be considered the sole condition for resuming approvals. Several factors are under review, including grid stability, protection of local water resources, and information on electricity and water use.

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In a quarterly SEC filing in July 2026, Nvidia also stated that difficulties securing sites and power could delay data center construction and affect future revenue.

Taking these points into account, this decline may be interpreted as reflecting concerns in share prices about how quickly and economically infrastructure can be built, rather than a collapse in AI demand.

With Micron down about 7%, attention also turned to the growth outlook for high-bandwidth memory (HBM).

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HBM is memory made by stacking multiple DRAM dies vertically to increase data processing speed and bandwidth. It is a key component used in Nvidia AI accelerators.

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If data center construction is delayed, GPU deployment could be pushed back, potentially affecting HBM orders or supply schedules as well.

However, Micron's share price decline alone does not establish that HBM orders have been canceled or demand has actually fallen.

Micron is responding to the next-generation AI memory market by mass-producing HBM4. Samsung Electronics and SK hynix are also developing HBM and server DRAM as key growth areas.

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Going forward, it is worth tracking HBM4 supply expansion and customer qualification, as well as actual shipment volumes and average selling prices (ASPs). It is difficult to conclude that the memory supercycle is over based on a single day's share price movements.

Weakness in U.S. semiconductor stocks also carried over to the Korean market.

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At 10:15 a.m. Korea time on November 5, 2026, Samsung Electronics shares were shown at 205,750 won, down 5.62%, on Naver Finance's main page. SK hynix was at 1,287,000 won, down 7.81%.

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These are intraday reference figures checked later than the 8 a.m. pre-market reports. Prices and percentage changes can shift during trading, so take care not to confuse them with the final closing prices for the day.

Both companies are affected by AI infrastructure investment trends, but their business mixes and customer bases differ.

The market is paying particular attention to changes in HBM demand for SK hynix. For Samsung Electronics, it is necessary to look not only at HBM competitiveness but also at the general-purpose memory cycle and foundry business.

The plunge in domestic semiconductor stocks shows that investor sentiment has weakened, but it does not by itself confirm an actual decline in HBM demand.

It is difficult to conclude from this decline in U.S. semiconductor stocks alone that the structural growth of the AI industry has ended.

Advances in AI models and the expansion of inference services could support long-term demand for GPUs, HBM, and high-speed networking.

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On the other hand, power grid shortages, delays in data center permits, and high capital costs could slow the execution of planned investments.

The outlook ahead can be considered through three broad scenarios.

1. Easing of regulations: If data center construction proceeds as planned, growth expectations for Nvidia and HBM companies may hold up.

2. Tighter regulations: Delays in new permits could put pressure on GPU and memory shipment schedules, as well as orders for power and cooling equipment.

3. Investment efficiency: If cloud companies improve capital expenditure efficiency, growth at some equipment suppliers may slow, while the AI services market could continue to expand.

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Investors should check Nvidia's data center revenue, Micron's HBM supply outlook, Samsung Electronics' and SK hynix's results, and capital expenditure plans from major cloud companies.

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In summary, this plunge brought into focus both the growth opportunities in the AI industry and the practical constraints involved in building data centers. Rather than reacting only to short-term share price movements, it is important to distinguish actual demand and supply contracts from whether policies have been finalized and implemented.

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