SpaceX Shares Fall 7% as AI Data Center Stocks Slide After Democratic Midterm Wins
Premarket losses spread across several AI-linked companies as investors weighed the election results and the prospect of tighter limits on data center projects.
SpaceX shares fell about 7% in premarket trading Wednesday as several AI data center stocks came under pressure following Democratic wins in the midterm elections.
CoreWeave also fell about 7%, while Iren was down roughly 6%. Nebius declined around 3% and Oracle lost about 4.3%, according to morning market reporting. Nvidia shares were slightly lower, while Alphabet, Meta and Microsoft were higher. These are premarket moves, not closing prices, and can change before and after the opening bell.
Investors were weighing Democratic control of both houses of Congress and state-level results in major technology markets. In Texas, Democrat Gina Hinojosa defeated Republican Gov. Greg Abbott after campaigning for tougher limits on data center development, including an immediate moratorium.
Texas is a major part of the planned U.S. data center buildout. Wells Fargo estimates that 27% of planned data center gigawatts are in the state, making policy changes there a focus for investors.
Democrats also won or retained the governorships in Georgia, Pennsylvania and Ohio, other states with substantial planned data center capacity. Analysts warned that tighter state-level restrictions could delay projects or raise their costs.
The selloff adds to existing concerns about the AI trade. The Nasdaq-100 finished October in correction territory as investors questioned the pace of future data center spending.