AI, data-center stocks slip as Democratic sweep clouds expansion plans
QQQ•AI and data-center-linked stocks fell in premarket trading after Democrats’ midterm victory raised concerns about industry scrutiny and construction delays. UBS analysts estimated that about 30% of expected U.S. data-center capacity additions in 2028 could be at risk from potential construction pauses.
1. Data-center stocks fall
Neocloud stocks CoreWeave and Nebius fell 1.6% and 2.2%, respectively. Applied Digital and Cipher Digital each dropped about 1%, while IREN fell 1.5%.
2. Expansion risks mount
Investors are concerned that Democratic control of Congress could bring tougher scrutiny of data centers and slow development, as public opposition to new facilities grows. UBS analysts estimated that about 30% of expected U.S. data-center capacity additions in 2028 could be at risk from potential construction pauses. The uncertainty adds to questions about whether heavy AI infrastructure spending will generate sufficient returns.
3. Market moves vary
GE Vernova fell 1.2% and Constellation Energy slipped 0.7%. Amazon rose nearly 1%, Microsoft was flat, and Nvidia, Intel and Broadcom fell between 0.4% and 1.5%. Separately, Qualcomm plunged 10.2% after quarterly smartphone-chip sales missed Wall Street estimates.
