Memory chip stocks fall as Texas election shifts AI infrastructure outlook

Memory chip stocks including Micron, SK Hynix, and SanDisk fell sharply on Wednesday as investors reassessed AI infrastructure investment prospects following Democratic victories in the U.S. midterm elections. Micron shares dropped over 6.7%, SK Hynix fell nearly 5.4%, and SanDisk declined more than 8%, contrasting with broad market gains where the S&P 500 rose 1.8%. The declines followed Democratic wins in Texas and Georgia, where opposition to rapid data center expansion has grown, with Texas Governor-elect Gina Hinojosa campaigning on a moratorium for new data centers. Analysts described the selloff as a valuation reset rather than a collapse in AI server plans, noting memory makers remain sold out through 2029. However, Goldman Sachs warned Democratic gains could affect roughly 45% of planned U.S. data center capacity increases, while Chinese chipmaker CXMT's alternative DRAM architecture poses a longer-term competitive threat.