AI Stocks Fall After Democrats' Midterm Win, $68B in Data Center Projects

Key Takeaways

• <ul><li>Democrats won control of both the Senate and House in midterm elections, triggering declines in AI and data center stocks</li><li>Texas and Georgia, accounting for about a third of AI data center spending, both elected Democratic governors</li><li>At least 45 data center projects worth $68 billion were disrupted by local opposition in Q2 2026</li><li>Microsoft jumped 6.01 percent to $552.32 while Nvidia fell 2.19 percent to $202.17 after the election results</li><li>Arista Networks surpassed 100 Etherlink customers and expects over 10 gigawatts of deployment by end of 2027</li><li>Microsoft Teams will add AI-powered phishing detection turning on automatically in November 2026, raising privacy concerns</li><li>LAIQON EU AI ETF reached EUR 90 million in volume about 10 weeks after listing in August 2026</li><li>BETA Technologies reported record revenue of $17.7 million with a backlog of 1,040 aircraft worth over $4 billion</li><li>ROSS Intelligence asked a court to reconsider a copyright case over using copyrighted material to train AI models</li><li>DeepSeek engineer Gao Xi defended open-source AI development at the World Internet Conference in Wuzhen</li></ul>

Democrats win midterms, AI stocks fall as data center scrutiny grows

Democrats won control of both the Senate and House in the midterm elections, causing AI and chip stocks to drop. Investors worry that tighter regulation of data centers and AI projects will slow the industry's growth. Texas and Georgia, two major states for AI data center spending, both elected Democratic governors. The 10-year Treasury yield fell to 4.91 percent as bonds rallied. Markets calmed by morning as investors realized full legislative gridlock is likely.

AI data center stocks drop after Democrats sweep midterms

Democrats swept the U.S. midterm elections, causing AI data center stocks to fall. CoreWeave dropped as much as 3.2 percent in premarket trading, Applied Digital fell 3 percent, and Nebius fell 1.3 percent. Analysts say a more restrictive data center environment could hurt AI infrastructure companies. In Q2 2026, at least 45 data center projects worth $68 billion were disrupted by local opposition. Texas and Georgia, which together account for about a third of AI data center spending, both voted for Democratic governors.

AI stocks dip, clean energy rises after Democrat midterm sweep

Data center stocks slid after Democrats won control of Congress, while clean energy shares rallied. Core Scientific fell 3.5 percent, Iren dropped 3.6 percent, and CoreWeave fell 3.8 percent. First Solar gained 7 percent, Sunrun rose 6.1 percent, and Enphase Energy was up 3.6 percent. Democrats plan to scrutinize efforts to roll back emissions rules and may use the Congressional Review Act to overturn favorable gas vehicle regulations. Elon Musk-linked companies also fell, with SpaceX down 5.2 percent and Tesla down 4.9 percent.

Tech stocks split after Democratic midterm sweep

Technology stocks showed mixed results after Democrats won the midterm elections. Microsoft jumped 6.01 percent to $552.32 and Alphabet rose 4.63 percent to $292.99. However, Nvidia fell 2.19 percent to $202.17, Tesla dropped 3.61 percent to $384.10, and Intel lost 5.80 percent to $57.04. The Nasdaq-100 climbed 1.14 percent to 28,500 after an overnight selloff. Investors are concerned about AI regulation and data center scrutiny following Democratic victories in Texas and Georgia. Trump Media & Technology Group plunged 14.29 percent to $5.10.

InvestingPro November AI stock picks go on sale at 55 percent off

InvestingPro launched an Early Bird Sale offering 55 percent off its November list of AI stock picks for $499. The ProPicks AI list has beaten the S&P 500 by 87.35 percent since its launch in November 2023, and users following the list are up 166.05 percent over the same period. October saw mega-cap tech shed about 11 percent while value, energy, and financial stocks climbed nearly 6 percent. The sale features stock picks including companies like Wingstop, Health Companies, and Cracker Barrel that posted large gains. The list also includes triple-digit winners such as Kingboard Chem at 547.10 percent and Nvidia at 226.7 percent.

AI investment strategies outperformed Nasdaq despite market decline in October

The Nasdaq fell 5.3 percent in October, but several AI-powered investment strategies posted big gains. The Best of Buffett strategy rose 9.3 percent, Mid-Cap Movers gained 7.3 percent, and Dominate the Dow added 5.5 percent. Fresh November picks including Intapp and CONMED already jumped over 5 percent. Some longer-term picks like Everforth are up more than 113 percent since being selected.

ROSS Intelligence asks court to reconsider Westlaw copyright case

ROSS Intelligence asked a US appeals court to rehear a copyright case brought by Thomson Reuters over Westlaw headnotes. ROSS argued that AI models train on copyrighted material similar to how authors learn from books. The company claimed that treating such training as infringement would stop AI development. The case centers on whether using copyrighted material to train AI counts as fair use.

BETA Technologies reports record revenue but guides lower for Q4

BETA Technologies reported record quarterly revenue of 17.7 million dollars. Its A250 electric aircraft received an FAA certificate for demonstration flights. The company has flown over 250,000 nautical miles and expanded its charging network to 168 sites. Its backlog includes 1,040 aircraft worth over 4.0 billion dollars. The company guided Q4 adjusted EBITDA between negative 95.5 million and negative 140.5 million dollars.

Jim Cramer says tech stocks need capitulation before bottoming out

Jim Cramer said tech stocks have not yet shown the capitulation that usually marks a market bottom. The Nasdaq 100 closed 10.4 percent below its record. Oracle fell nearly 9 percent after announcing a 20 billion dollar debt and stock sale. Cramer said AMD and Arista Networks could lead a rebound if they avoid heavy capital raises. He also noted that seven of eleven S&P 500 sectors rose as money rotated out of chips.

DeepSeek engineer defends open-source AI development despite risks

DeepSeek engineer Gao Xi defended open-source AI at the World Internet Conference in Wuzhen. He said open-source development speeds up shared innovation and technical breakthroughs. Gao said the goal is to bring artificial general intelligence closer, even if it raises safety risks. He framed the work as a race against time rather than against rival companies. The remarks were rare from a DeepSeek representative.

Microsoft Teams adds AI security feature raising privacy concerns

Microsoft is adding a new AI feature to Teams that will detect phishing and scams by analyzing conversations. The feature will use behavior-based detection to find suspicious activity in messages. It will turn on automatically in November 2026 without IT admins needing to set it up. This raises privacy questions because Microsoft had similar problems before with its Recall feature.

Claudinho ESP32 project brings Claude Code mascot to hardware

Claudinho is an open-source project that connects the Claude Code mascot to ESP32 hardware. Created by argeuthiesen on GitHub, it uses Wi-Fi to receive updates from Claude Code. When coding events happen like task starts or errors, the ESP32 shows visual notifications on a screen or LED matrix. The firmware is written in C++ using the Arduino framework and can be customized by developers.

Arista reports record growth as AI networking demand surges

Arista Networks showed strong growth in its third quarter driven by AI and enterprise networking. The company surpassed 100 Etherlink customers and expects over 10 gigawatts of deployment across many compute accelerators by end of 2027. Arista is also working on AI security through its AVA system and collaborating with Anthropic, Google, and OpenAI. R&D spending grew to over $130 million for the quarter.

LAIQON EU AI ETF hits EUR 90 million as US AI ETF launches

The LAIQON EU AI ETF reached EUR 90 million in fund volume about 10 weeks after listing on August 18, 2026. The LAIQON US AI ETF began trading on the Xetra exchange on October 13, 2026. The US fund invests in up to 400 stocks from the MSCI USA Index using AI to analyze over 125 million data points daily. Amundi partners with LAIQON to manage the fund with a tracking error target of 2 to 5 percent per year.

Sources

• Blue Wave Hits AI Stocks: Markets Slide After Democrats’ Midterm Sweep
• AI data center stocks drop as Democrats sweep U.S. midterms
• AI data center stocks dip, renewables surge after Democrat sweep in US midterm elections
• Tech, AI Stocks Split After Democratic Sweep: Microsoft Jumps, Tesla and Nvidia Tank
• EARLY BIRD SALE: November’s NEW LIST of AI stock picks IS NOW LIVE and 55% off
• Nasdaq sank -5.3%, but these AI strategies surged up to +9.3% in October
• ROSS Intelligence asked US appeals court to revisit AI case over Westlaw | MLex | Specialist news and analysis on legal risk and regulation
• BETA Technologies Guide Implies Q4 Sales Below Record $17.7M
• Jim Cramer Waits for Capitulation as AI Funding Worries Hit Tech Stocks
• DeepSeek engineer defends push for open-source AI smarter than humans
• Microsoft Teams AI Security Feature Sparks New Privacy Questions
• Claudinho Brings Claude Code Mascot to ESP32 Hardware With Real-Time AI Notifications
• Arista posts record growth as AI networking supercycle accelerates
• LAIQON: EU - AI ETF reaches EUR 90 million – US - AI ETF begins stock market listing