AI and data-center stocks fall as Democratic sweep raises expansion concerns

AI and data-center stocks slipped in premarket trading Thursday after Democrats' sweeping US midterm victory raised concerns about potential hurdles to the industry's rapid expansion. Neocloud stocks fell, with CoreWeave down 1.6% and Nebius down 2.2%, as investors worry Democratic control of Congress could bring tougher scrutiny of data-center development. UBS analysts estimated around 30% of expected US data center capacity additions in 2028 could be at risk from potential construction pauses. Data-center operators Applied Digital and Cipher Digital fell about 1% each, while IREN dropped 1.5%. Utilities and equipment suppliers also weakened, with GE Vernova down 1.2% and Constellation Energy slipping 0.7%. Chipmakers Nvidia, Intel and Broadcom fell between 0.4% and 1.5%, while Qualcomm plunged 10.2% on weak quarterly sales.