SpaceX (SPCX) fell 7% and Tesla (TSLA) fell 5% on Wednesday, along with AI-linked stocks CoreWeave (CRWV), IREN (IREN) and Vertiv (VRT), after Democrats won majorities in the House and Senate. Yorkville analyst Dan Ives said this will slow the pace of 800 to 1,000 planned AI data centers across the US over the next 2 years. He pointed to Texas as the biggest risk, where around 25%-30% of data center gigawatts and capacity will come from, after Democrat Gina Hinojosa defeated Governor Greg Abbott. Ives said SpaceX and Musk are caught at the center of this political risk, and Big Tech will need to adapt to the new political landscape.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXTSLANVDAdata centersDemocratic Party
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.6T |
| Close on 11/03/2026 | 398.22 |
| Change that session | -1.39% |
NVDA
▼ 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% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Tesla and SpaceX shares slide as Musk’s political push falls flat
Billionaire Elon Musk spent hundreds of millions of dollars on the U.S. election. Investors are now worried about less favorable policies under new Democratic officials.
- Stock Market Election News: Dow Futures Reverse Higher, AMD, Arista Rally After Democrats Sweep; SpaceX, Tesla Are Losers (Live)
Dow futures and many AI stocks reversed higher after the Democrats' big win on election night. Meanwhile, shares of Elon Musk's Tesla and SpaceX were among the losers.
- AI Faces A Higher Hurdle, Not An Extinction Event After Democrats' Midterm Sweep, Says Saxo Strategist
Democrats won control of both the House and Senate, which could limit President Donald Trump's legislative agenda over his remaining two years and add uncertainty for AI and tech stocks, according to Saxo. Chief Investment Strategist Charu Chanana flagged three risks: greater congressional oversight of AI companies, data-center restrictions over electricity, water use and permits, and uncertainty over capital spending. Investors may demand more on the funding and profitability of AI infrastructure, shifting attention toward companies showing meaningful returns. Saxo suggested that firms using AI to boost productivity without heavy infrastructure spending could attract more interest, and that Nvidia's (NVDA) upcoming earnings would be a more meaningful test of the AI outlook than the election itself.
- Market Chatter: Data Center Developers May Face Tighter Rules After Democratic Wins
- Stock market today: Dow, S&P 500, Nasdaq futures sink after Democrats take control of House, Senate
Dow Jones futures rose 0.6%, S&P 500 futures gained 0.2% and Nasdaq-100 futures were just above flat after Democrats won control of both chambers of Congress, paving the way for a divided government. Markets quickly repriced the possibility of ballot measures and newly elected officials restricting data center construction. Chip stocks including Nvidia (NVDA) and Micron (MU) fell more than 1%, while AMD (AMD) rose 6% in premarket trading after beating expectations with its Q3 earnings. Investors are also watching for actions on housing and pharmaceuticals after the election, and the economic calendar includes ADP private payrolls and ISM activity data.
- 3 AI Infrastructure Stocks Riding The Tesla And SpaceX Compute Buildout
The article examines three AI infrastructure stocks tied to the Tesla and SpaceX merger narrative and the growing compute buildout. Nokia Oyj (market cap €41.7b) provides networks that carry data for AI data centers, with AI & Cloud net sales more than doubling year on year to €446 million and Q2 2026 orders reaching €2.8b. BizLink Holding (market cap NT$365.8b) supplies high-performance cabling and connectivity for AI data centers, generating NT$111.8b from its Computer Transmission segment. Sandisk (market cap US$181.3b) designs and sells NAND flash storage for servers, data centers and AI compute systems, with US$20.2b in revenue from data storage devices and solutions.
Related markets
Latest news
- How Tesla and SpaceX stocks are reacting to Democrats winning Congress
Defiance ETFs CIO Sylvia Jablonski said the immediate pre-market reaction in Tesla (TSLA) and SpaceX (SPCX) shares to Democratic midterm wins is still early and could change. She suggested that a possible merger between the two Musk companies could be fast-tracked, since it would need to happen within the next two years, before a deal would face closer review. Some House Oversight Committee members have said they plan to call Elon Musk, Dario Amodei, Mark Zuckerberg and Sam Altman to testify, though she doubted such hearings would move stock prices unless they uncover damaging information. She cited Boeing and Facebook as examples where public pressure led to change, and noted that government funding runs out on December 11.
- Microsoft Corporation (MSFT) Outperforms with Record Quarter Driven by Azure Demand Surge
The Polen 5Perspectives Large Growth Composite returned 0.0% in Q3 2026, trailing the Russell 1000 Growth Index's 0.9%, as AI equities sold off amid concerns over hyperscaler capex and crowded trades. In its investor letter, the fund said its underweight position in Microsoft detracted from relative performance as the shares gained roughly 39% in the quarter, the stock's best quarter since 1991. The rally followed fiscal fourth-quarter results in which Azure and other cloud services revenue grew 43% year over year, Azure surpassed $100 billion in annual revenue for the first time, and Microsoft 365 Copilot passed 30 million paid seats. MSFT closed at $520.99 on November 3, 2026, with a market capitalization of $3.88 trillion. Microsoft ranked second on a list of 40 most popular hedge fund stocks, held by 273 hedge fund portfolios at the end of Q2 versus 282 in the prior quarter.
- What sets AMD data centers apart as Intel stock keeps sliding?
AMD beat Wall Street estimates for its third-quarter earnings, as AI data center revenue nearly doubled to $8.55 billion. Guests said Intel posted strong data center numbers but weak PC sales, and its stock plunged, while AMD's forward guidance, contracts, backlog and margins were seen as stronger. Revenue could grow 80% in 2027, up from an earlier estimate of 35%. They noted that higher memory prices and component costs were hurting PC demand, with 2027 PC shipments projected to fall by a double-digit percentage and gaming sales down 8% year-on-year. Commentators compared AMD's focus on data centers to Nvidia's shift from gaming chips to AI.
- Nvidia Is Telling Cloud Clients to Sell at Least 51% to Non-Chinese Customers
According to the Financial Times, Nvidia has quietly told its cloud partners that at least 51% of their services must go to non-Chinese customers, an unwritten rule conveyed through its sales force that applies only to future contracts. Nvidia neither confirmed nor denied the report, and its statement did not mention China. The move targets Chinese companies that rent computing power outside China to train AI models, a route Washington has tried to close for years, and the cost falls on smaller neocloud providers that rely on Chinese demand. According to the company's latest 10-Q, direct customers headquartered in China, including Hong Kong, generated $7,880 million of the $96,221 million in revenue for the quarter ended July 26, 2026. Its fiscal third-quarter guidance of $108.0 billion, plus or minus 2%, excludes any data center compute revenue from China, and results are scheduled for November 17.
- Dow Jones futures surge 1,000 points after Democratic win, Trump makes surprising new move
Dow Jones futures jumped as much as 1,083 points, or 2.1%, after Democrats won majorities in both the House and Senate in the midterm elections and took several key governorships, including Texas. The result could curb President Trump's policies, which combined business tax cuts with tariffs and the war in Iran, contributing to higher inflation. S&P 500 futures rose 1.1%, while Nasdaq-100 gained only 0.4% as AI-linked stocks came under pressure. Trump told the New York Times he was “fully prepared” to accept the results and said he and Republican lawmakers would work with Democrats, while Walmart rose 2%, Bank of America 1.9%, UnitedHealth 1.4% and Molina Healthcare 6.3%. Investors remain wary of possible restrictions on data center construction, as Gina Hinojosa, who pledged to pause new data center projects, won the Texas governor's race.
- What i-80 Gold (IAU) Said on Its Q3 Earnings Call
i-80 Gold said the feasibility study for Granite Creek Underground is complete, outlining an 8.5-year mine life, while Archimedes is set to begin mining in Q4 2026. The Lone Tree refurbishment is on schedule for first gold in Q4 2027, with its $430 million capital estimate largely intact. The company expects production to rise from 40,000–50,000 ounces annually to 150,000–200,000 ounces from 2028, with 2026 output in the lower half of guidance. In Q3, Granite Creek produced about 9,100 ounces of gold, though processing lagged mining due to limited availability at a third-party processor. At quarter-end, the company held about $411 million in cash and could access up to roughly $350 million in additional liquidity over the next 18 months, subject to financing arrangements and approvals.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.