Technology and artificial intelligence stocks fell sharply after the Democrats’ victory in the U.S. midterm elections, driven by concerns over regulation and the pace of investment in data centers. Nvidia lost 9.3%, AMD 17.3%, Microsoft 3.6%, Broadcom 10.4%, Tesla 10.8%, and SpaceX 9.1%, while computing service providers declined between 10% and 17%. According to the International Data Center Authority, at least 46 projects representing more than $170 billion in announced investment were blocked, withdrawn, or delayed between January 2024 and May 2026 across 20 states. Goldman Sachs estimates that global AI-related infrastructure spending could reach $7.6 trillion between 2026 and 2031. Investors now fear a slowdown in the planned deployment of 800 to 1,000 U.S. data centers, while Big Tech investment spending could peak in 2027 rather than 2028 or 2029.
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