AI, data-center stocks slip as Democratic sweep clouds expansion plans
CRWV•AI and data-center-linked stocks fell in premarket trading after Democrats’ midterm victory raised concerns about potential hurdles to industry expansion. 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. Expansion concerns weigh
Neocloud stocks CoreWeave and Nebius fell 1.6% and 2.2%, respectively, as investors worried that Democratic control of Congress could bring tougher scrutiny of data centers and slow development. UBS analysts estimated that potential construction pauses could put about 30% of expected U.S. data-center capacity additions in 2028 at risk.
2. Related stocks fall
Data-center operators Applied Digital and Cipher Digital each fell about 1%, while IREN dropped 1.5%. GE Vernova fell 1.2% and Constellation Energy slipped 0.7%; Nvidia, Intel and Broadcom fell between 0.4% and 1.5%. Amazon rose nearly 1% and Microsoft was flat. Separately, Qualcomm plunged 10.2% after quarterly smartphone-chip sales missed Wall Street estimates.
