AI Stocks Drop After Midterms Amid Data Center Pushback — SkimNews
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- Nvidia lost 9.3% of its market value, with AMD shedding 17.3%, Micron 17.5%, and Tesla 10.8% as investors reacted to the midterm results on Thursday.
- Neoclouds Nebius, Iren, and CoreWeave dropped 15%, 17%, and 10% respectively, hit hard by concerns over stalled AI data center projects amid rising political resistance.
- Dan Ives of Yorkville Ives & Co. stated the midterms will slow the planned 800 to 1,000 U.S. data centers, pushing Big Tech’s capex peak forward to 2027 from 2028/2029.
- Kyle Rodda at Capital.com noted investor anxiety over a Democrat-controlled Congress increasing regulatory risks for the AI trade, already weakened by disappointing earnings.
- International Data Center Authority found 46 AI data center projects across 20 states—worth over $170 billion—were blocked, withdrawn, or stalled from January 2024 to May 2026 due to community opposition.
- Dominique Toublan of Barclays Investment Bank described the AI infrastructure race shifting from a 'prisoner’s dilemma' to a 'war of attrition,' favoring firms with the largest balance sheets.
Why it matters: The AI buildout now faces higher political and regulatory hurdles, with Democrats in control likely to slow data center approvals. This shifts advantage to Big Tech firms with deep pockets, delays capital spending peaks by up to two years, and signals a structural tightening in AI infrastructure growth that markets are pricing in immediately.
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