Nvidia, which remains the world's second most valuable company by market capitalization after Apple, has lost more than $1 trillion in value since its October peak. The chipmaker's shares fell sharply after the US midterm elections and then partially recovered. Nvidia's current market capitalization is about $4.5 trillion, but the stock has declined since the beginning of the year.
Analysts link the sell-off to the Democrats gaining control of both chambers of Congress. Reportedly, the winning candidates campaigned against the construction of artificial intelligence data centers. Investors interpreted this as a possible risk to AI-related business, since such data centers form the basis of demand for Nvidia's products. Against this backdrop, the company's shares came under pressure, and the recovery has been incomplete.
Against this backdrop, Krispy Kreme stood out. The doughnut chain's shares have risen by about 3% since the start of 2026. After a strong earnings report on November 5, the stock jumped sharply, but growth has since slowed somewhat. Krispy Kreme's market capitalization does not exceed $1 billion, which makes the difference in scale between the two companies especially striking.
The comparison is tongue-in-cheek: Nvidia and Krispy Kreme are not competitors, and their businesses are not comparable. Nevertheless, the contrast between the fall of a technology giant and the rise of a doughnut maker has become a noticeable signal for a market that has been closely watching policy decisions affecting the AI industry in recent weeks.
Meanwhile in California, vote counting continues on Proposition 40, which would impose a one-time 5% tax on billionaires' assets. So far, about 45% of voters statewide have supported the initiative, and 55% have opposed it. Santa Clara County, home to the centers of Silicon Valley, voted against it, as did Marin and San Mateo counties. However, San Francisco, where OpenAI and Anthropic are based, supported the tax by 55% to 45%, and Los Angeles County supported it by 53% to 47%.
Opponents of the proposal feared that the tax would eventually become recurring and force founders to sell stakes in their companies. Reportedly, several billionaires have already left California, and the campaign against the initiative was funded by Sergey Brin. Competing Proposition 42, which would prohibit taxation of savings, assets, and retirement accounts, is leading in the vote count.
The final voting results have not yet been announced, so the picture may change. Whether a wealth tax of this kind will return at the national level or in California remains an open question. Tax advisers are advising wealthy state residents to review their residency status and estate plans, since decisions on these matters may be sensitive to the outcome of the vote.