AI and data-center stocks slip as Democratic sweep clouds expansion plans

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