AI-linked data center stocks slide as Democrats crack Republican strongholds
QQQ•AI-linked stocks fell in premarket trading after Democrats won in key data center markets, including Texas and Georgia. CoreWeave fell 3.2%, while server makers and data center operators also declined.
1. Premarket declines
CoreWeave fell 3.2%, while Nebius and IREN dropped 3.3% and 3%, respectively. The Roundhill Neocloud ETF declined 3.8%; it had hit its lowest level since beginning trading in August on Wednesday.
2. Wider sector moves
Dell, Super Micro and Hewlett Packard fell between 2.4% and 3.2%, while CrowdStrike, Fortinet and Zscaler declined between 2.1% and 3.2%. Applied Digital, Hut 8 and Cipher Digital were down between 2.5% and 3.9%. Core Scientific rose 3.4% after strong results.
3. Regulation concerns
Democratic gains fueled concerns about tighter data center regulation and potential curbs on AI infrastructure expansion that underpins AI computing demand. GE Vernova, Constellation Energy and Vistra fell between 2.5% and 3.5% as of the last close.
