AI and data-center 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 US data-center capacity additions in 2028 could be at risk from construction pauses.
CoreWeave and Nebius fell about 4% each, as investors worried that Democratic control of Congress could bring tougher scrutiny and slow data-center development. Applied Digital, Cipher Digital and IREN also fell about 4% each.
UBS analysts estimated that about 30% of expected US data-center capacity additions in 2028 could be at risk from potential construction pauses. The article said investors are questioning whether the large capital spending needed for AI infrastructure will generate sufficient returns. Ted Parkhill of Incline Investment Management said, “The market's moving from the promise of AI to the price of AI.”
Amazon, Alphabet and Meta rose nearly 1% each, while Microsoft was flat. Qualcomm fell 9% after quarterly smartphone-chip sales missed Wall Street estimates; Nvidia, Intel and Broadcom slipped between 1.5% and 2.2%.
