Credo Technology (CRDO) shares fell 10% alongside AI data center stocks after Democrats won both chambers of Congress and key governors' races, pledging tougher limits on data center construction. The biggest concern is Texas, where Democrat Gina Hinojosa beat Gov. Greg Abbott on a promise of an immediate data center moratorium; Dan Ives noted the state will supply around 25% to 30% of data center capacity. Active electrical cables supplied over 99% of Credo's revenue growth in fiscal 2026, and the article argues a Texas moratorium is a bigger threat to the $3.88 billion fiscal 2028 estimate than to this year's. Dell dropped 9% and Coherent fell 7%, while Amazon rose 7% as AWS sales grew 39%. Credo's forward P/E of 19x at Tuesday's close was its three-year low and far below its 63x average, and its early-December report will show whether customers are ordering fast enough to deliver growth above 85% this year.
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▼ Likely negativeAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 11/03/2026 | 250.74 |
| Change that session | +2.08% |
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▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/03/2026 | 206.57 |
| Change that session | +2.23% |
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