- AI stocks declined after Democrats' midterm victories raised regulatory concerns on data centers
- Chipmakers like Micron, AMD, SanDisk, and Nvidia saw losses up to 10% at market open
- Democrat Gina Hinojosa won Texas governor's race, pledging a moratorium on data center construction
AI stocks took a hit on Wednesday, Nov 4, with chipmakers, data centre operators and other technology stocks falling after Democrats scored sweeping victories in the US midterm elections. All eyes are now on whether the party's gains could translate into tighter restrictions on data centre construction, which is a key driver of the AI investment boom.
Several chip stocks, including Micron, AMD, SanDisk and Nvidia, came under pressure at market open, with losses reaching as much as 10%. SanDisk fell to an intraday low of $1,059, down around 9.5% from its previous close, before paring much of its decline. However, it is still trading in the red.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The AI stocks are under pressure as Democrats won the majority in both House and Senate, including the Texas governor's race. Democrat Gina Hinojosa defeated incumbent Republican Greg Abbott. Hinojosa has pledged an immediate moratorium on data centre construction in Texas.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
This has resulted in a spotlight on the state's role in the AI infra pipeline. According to Wells Fargo, 27% of all planned data centre capacity in the US is located in Texas, and any restrictions on new projects there could affect construction timelines and the companies supplying the infra, power, computing equipment needed to run them.
Democrats are seen as more supportive of proposals to pause or restrict data centre development, amid growing debate over electricity demand, grid capacity and the impact on local communities. Dan Ives, partner at Yorkville Ives & Co., said in a note on Wednesday that the midterm results could slow the pace of data centre buildouts across the US.
Elon Musk has also responded to the poll results on X with a pointed remark: "Data centers in space looking pretty appealing right now."
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
