Hyperscalers and Apple surge after election results remove investor uncertainty — SkimNews
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- Amazon led Wednesday's hyperscaler rally, jumping 8% as Google gained over 6%, Microsoft rose 4% and Meta added 3%; JPMorgan Asset Management's David Kelly said Tuesday's results removed uncertainty, pointing to a divided government's "moderation in growth, moderation in inflation, less uncertainty."
- Apple climbed nearly 7% in the same session, a move that came after the company faced Trump's tariffs and recently received refunds.
- A CNBC Voter Poll found 56% of voters said data centers were a crucial or major factor in their voting decision, after 41 local ballot measures on placing restrictions or clearing the way for AI data centers went to Tuesday's vote and voters sided against the projects in 40 of them.
- Democrats who proposed data center moratoriums won gubernatorial races in Texas, Georgia and Ohio, raising concerns about projects getting snagged in regulation; Macquarie's Paul Golding noted backup power emissions, zoning, water, grid interconnection and taxes are overseen by state regulators, while Needham's Laura Martin said higher barriers entrench incumbents — "hyperscalers are AI incumbents."
- CoreWeave fell 10% as Baird analysts called the election results a "sentiment headwind" for neoclouds; Golding said those providers may pay more to lease powered shells for GPUaaS commitments while hyperscaler and AI lab capacity needs intensify competition for even more limited supply.
- Tesla dropped 2% and SpaceX fell 3% among stocks tied to Trump advisor Elon Musk, while Nvidia, which makes the chips for most AI data center projects, slipped just over 1%.
- Chris Miglino said the results don't necessarily signal a nationwide slowdown — companies are still raising capital, enterprises are still spending and capacity is still needed — and that operators with secured power, financing and deployment experience sit in a much stronger position than those still working out execution.
Why it matters: The 40-of-41 vote against data centers produced no uniform tech selloff: Amazon rose 8% while CoreWeave dropped 10%. Laura Martin said higher regulatory barriers entrench incumbents, and Chris Miglino said operators with secured power and financing hold a stronger position, leaving hyperscalers better placed than neoclouds.
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