Chip stocks slip as Democratic sweep clouds data center outlook

Chip stocks fell Wednesday after Democrats won control of both chambers of Congress and key governorships, raising concerns about the pace of data center construction and the AI buildout, according to Associated Press projections. Shares of Micron and other chipmakers slipped as Wall Street forecasts depend on new data center capacity coming online, per MarketWatch. Democrats also won or retained governorships in Texas, Georgia, Pennsylvania, and Ohio, states that account for significant shares of planned U.S. data center capacity, according to Wells Fargo estimates cited by CNBC. Analysts warned the results could slow AI infrastructure spending, though committed projects remain unaffected. Dan Ives of Yorkville Ives & Co. called the Texas outcome the "biggest worry" for tech investors, while broader markets rose, with the Dow up 2% and the S&P 500 gaining 1.25%.