Democrats' midterm sweep fuels $750 billion Big Tech rally
QQQ•Shares of Amazon, Meta Platforms, Alphabet, Microsoft and Apple rose after Democrats' midterm victories, with the five companies on course to add more than $750 billion in combined market value if gains hold. Investors bet potential limits on data-center construction could slow spending and ease pressure on cash flows.
1. Big Tech shares jump
Amazon shares surged 7.4% to a three-month high, while Meta Platforms, Alphabet and Microsoft gained between 2% and 6.3%. Apple rose nearly 7% to a record high. If the gains hold, the five companies are on course to add more than $750 billion in combined market value.
2. Data-center outlook shifts
The gains followed Democrats' midterm victories, including in Texas, as investors bet potential curbs on new data-center construction could slow the build-out and ease pressure on cash flows. The companies plan to spend more than $740 billion this year, up from roughly $400 billion last year. One strategist said existing data centers could become more valuable if construction slows, while a slower build-out could also mean slower capital spending.
3. Smaller operators fall
Shares of Applied Digital and Iren fell between 6% and 13% on concerns that construction curbs could derail their debt-fueled expansion plans. The article said Texas is expected to account for about 25% to 30% of data-center capacity.
