AI Stocks Slide as Midterm Results Raise Data Center Slowdown Fears

Week of November 2, 2026

AI Stocks Bounce Friday, Capping Wall Street's Worst Week Since 2025

CoreWeave, Micron and Nvidia led a Friday rebound, but the S&P 500 still fell 2.7% for the week on midterm data center fears.

View the data

	Friday, Nov 6 move
Nasdaq	1.1%
S&P 500	0.3%
Dow	−0.5%
Nvidia	2.8%
CoreWeave	6.3%
Micron	5.1%

More charts in By the Numbers

Wall Street had its worst week since April 2025 as investors weighed what Democrats' gains in Tuesday's midterm elections could mean for the pace of U.S. data center construction. Chipmakers, AI cloud providers and power producers took the heaviest losses, while the largest cloud platforms held up better. For enterprise buyers of AI capacity, the swings are an early read on how markets price the risk of a slower, costlier buildout.

The S&P 500 fell 2.7% for the week, its worst weekly drop since April 2025, the Associated Press reported. The index closed Friday at 7,376.86, about 5.7% below the record it set last month.

Which stocks fell first after the election?

The first moves on Wednesday split the AI trade in two. Power and data center names dropped while the biggest cloud companies rose, Reuters reported Wednesday morning, in figures that may differ from closing prices. Vistra fell 15.4%, GE Vernova 11.5% and Constellation Energy 9.2%. AI cloud provider CoreWeave lost 9.5%. Amazon and Microsoft each gained 6% and Alphabet 4.6%, while solar and renewable stocks such as First Solar and Enphase Energy rallied.

Analysts quoted by Reuters offered two readings. Mark Malek of Siebert Financial said the buildout would get more expensive rather than disappear, with borrowers most exposed. Art Hogan of B. Riley Wealth argued that if new construction slows, hyperscalers' existing data centers become more valuable, though their capital spending would also slow. Evercore ISI's Amit Daryanani described "incrementally more negative sentiment for AI infrastructure exposed names," Yahoo Finance reported.

How bad was Thursday's AI selloff?

The selloff broadened on Thursday. The S&P 500 fell more than 4%, its worst day since the April 2025 tariff shock, and the PHLX Semiconductor Index dropped 12%, its worst day since March 2020, according to Yahoo Finance's market coverage.

Nvidia fell 9.3%, erasing roughly $448 billion in market value and its gains for the year, Techzine reported. AMD and Micron each fell more than 17%, Broadcom more than 10% and TSMC nearly 11%. Apple, Alphabet and Amazon each fell less than 3%. In Techzine's reading, investors were penalizing the companies that supply the AI buildout and going easier on the companies that buy from them.

What are analysts saying about a data center slowdown?

Banks put early numbers on the exposure. Goldman Sachs estimated about 45% of planned U.S. data center capacity could face restrictions from newly elected governors, Yahoo Finance reported. UBS estimated construction pauses could put roughly 30% of planned 2028 capacity additions at risk, Al Jazeera reported, citing Reuters. J.P. Morgan said the risk falls mainly on 2028 projects because about three-quarters of capacity due online in 2027 is already under construction, according to Techzine.

Not everyone sees a turning point. Yardeni Research called the selloff a buying opportunity and described the political backlash as "speed bumps, not roadblocks," Yahoo Finance reported. AMD chief executive Lisa Su told CNBC that the election does not change her outlook and that demand for compute remains intense, The National reported.

Is this the AI bubble bursting?

The week revived a debate that predates the election. Skeptics point to accounting: Techzine noted that hyperscalers depreciate servers over five to six years, and that investor Michael Burry argued in 2025, as CNBC reported at the time, that they understate depreciation by about $176 billion through 2028. Bulls point to demand that still exceeds supply. Techzine noted that IREN is renting out Nvidia H100 chips at double its earlier prices because compute remains scarce.

Interest rates added pressure. Employers added 165,000 jobs in October, well above forecasts, Yahoo Finance reported, and traders saw a greater chance of a Federal Reserve rate hike in December, according to the AP. The AP linked part of the slide to worries that higher borrowing costs could slow data center construction, alongside fears that Democratic statehouse wins, particularly in Texas, could do the same.

Markets steadied on Friday. The Nasdaq rose 1.1% and the S&P 500 0.3%, while the Dow slipped 0.5%, the AP reported. Nvidia rose 2.8% after losing 9.3% and 3.2% in the previous two sessions. CoreWeave gained 6.3% and Micron 5.1%. Overseas, indexes in Tokyo and Seoul each fell about 6% as they caught up with Thursday's U.S. losses.

What does it mean for enterprise AI buyers?

Stock prices do not set cloud contracts, but they do shape how much capital providers can raise. If Malek is right that the buildout gets more expensive rather than disappearing, some of that cost could eventually reach buyers of compute.

Practitioners at AI Connect events have been warning about that kind of shift. At The AI Enterprise Conference 2026, Joshua Ainsley, Senior Director and Head of Data Science at New Balance, said venture capital funding for AI vendors "isn't going to last forever," a point covered in our report on measuring AI cost per outcome. Leaders who already track spend closely, as in Verisk's self-funding approach, are better placed if prices move.

The next test arrives soon. Nvidia is scheduled to report quarterly results on November 17, Techzine noted, giving investors a fresh look at whether demand from its largest customers is holding up.

Frequently asked questions

Why did AI stocks fall after the midterms?

Investors worried that newly elected Democrats, especially governors, could restrict or slow data center construction, and strong jobs data raised the odds of a Fed rate hike.

Which companies were hit hardest?

Chipmakers such as Nvidia, AMD, Micron and Broadcom, AI cloud providers such as CoreWeave, and power producers such as Vistra fell most. Large cloud platforms fell less.

Is the AI bubble bursting?

Analysts are split. Yardeni Research called the selloff a buying opportunity, while skeptics point to depreciation accounting and slower buildouts.

Filed under: Data & AI Infrastructure, AI Strategy & ROI