Amazon, Microsoft and Alphabet all rose sharply on Wednesday after Democrats won control of both the House and Senate, lifting the major indexes, with Amazon up 7.1%, Microsoft 7% and Alphabet 4.1% at the time of writing. Many expect the Democratic win to bring tighter data center rules, which could slow capex spending, though McKinsey projects data center spending could reach $5.2 trillion by 2030. The author argues the three firms could benefit if new competition is limited and capex falls, citing Bill Ackman's view that hyperscaler free cash flow could be meaningfully higher in coming years. Capex guidance for 2026 is about $220 billion at Amazon, $200 billion at Alphabet and $170 billion at Microsoft. The article notes these companies trade at 22 times, 15 times and 29 times earnings respectively for Amazon, Alphabet and Microsoft, with Alphabet near an all-time low.
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AMZNGOOGLMSFTmidterm electionsdata centers
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 11/03/2026 | 250.69 |
| Change that session | +2.06% |
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 11/03/2026 | 280.03 |
| Change that session | +0.37% |
MSFT
▲ Likely positiveMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 11/03/2026 | 520.99 |
| Change that session | +2.74% |
QQQ
▲ Likely positiveInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/03/2026 | 685.28 |
| Change that session | +0.62% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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