Business & Finance

Tech Shares Surge as Democrats’ Midterm Wins Spark Data‑Center Curbs

By Reuters

Shares of Amazon rose 7.4% to a three‑month high, while Meta Platforms, Alphabet and Microsoft gained between 2% and 6.3%, after Democrats’ landslide victories in the midterm elections. Apple also jumped nearly 7% to a record high. The gains could add more than $750 billion to the combined market value of the five companies. The rally follows quarterly earnings that showed AI infrastructure spending turning cash‑rich, debt‑light firms into heavy spenders, except for Microsoft, which posted $18.6 billion in cash flow. Analysts say the election may slow future data‑center build‑out, making existing hyperscaler assets more valuable and reducing capital expenditures. The tech giants plan to spend over $740 billion on capacity this year, up from about $400 billion last year, far exceeding smaller AI cloud rivals such as CoreWeave and Nebius. Shares of smaller players like Applied Digital and Iren fell 6% to 13% amid fears that data‑center construction limits could derail their debt‑fueled expansion plans. The companies have been spending several times their revenue to meet a growing backlog of orders. Analysts note that the slowdown in Texas, where 25%–30% of data‑center gigawatts and capacity are expected, may be viewed positively by investors. Published – November 05, 2026 10:03 am IST