Memory chip stocks experienced a sharp decline as investors reacted to the results of the U.S. midterm elections. The Democratic party's success has raised concerns about potential headwinds for the rapid expansion of AI data centers, which are significant consumers of memory products. Market participants are anticipating possible moratoriums or stricter regulations on data center construction. Adding to the negative sentiment, a lawmaker's call to pause advanced AI development and disappointing smartphone sales figures from Qualcomm have further spooked investors about future demand.