Shares of US tech giants soared after Democrats' victory
Shares of the largest American technology companies rose sharply on November 4 after the Democratic Party's victory in the US midterm congressional elections. Five corporations could collectively increase their market capitalization by more than $750 billion due to changes in investor expectations regarding artificial intelligence regulation and data center construction.
This was reported by Reuters citing stock market data and market participant assessments.
Amazon shares jumped 7.4%, reaching a three-month high. Apple shares added nearly 7% and set a new all-time record. Shares of Meta Platforms, Alphabet and Microsoft rose by 2–6.3%.
If these levels hold until the close of trading, the combined market value of these five companies will increase by more than $750 billion.
The rise was an unexpected reversal after several days of sell-offs driven by investor concerns about the rapid increase in spending on artificial intelligence development.
Democratic victory changed investor expectations
After Democrats gained a majority in both houses of the US Congress, market participants began to reassess the outlook for building new data centers.
In particular, the victory of candidates opposing the expansion of data center infrastructure, including politicians from Texas, reinforced expectations of a possible slowdown in construction of such facilities.
Data centers consume significant amounts of electricity and water, and their rapid expansion has drawn the ire of some local residents.
Investors are counting on potential restrictions on new data center construction benefiting the largest technology companies, which already have significant computing capacity.
According to B. Riley Wealth Chief Market Strategist Art Hogan, a slowdown in construction could increase the value of existing infrastructure while reducing the need for technology corporations to make new capital expenditures.
Thus, restrictions that were initially perceived by the market as a threat to artificial intelligence development are now viewed by some investors as a possible advantage for the industry's largest companies.
Tech companies were preparing to spend over $740 billion
The scale of investment in artificial intelligence has become one of the main causes of concern in the stock market.
According to Reuters, the largest technology corporations plan to spend more than $740 billion on infrastructure development in 2026. For comparison, in 2025 the corresponding spending was about $400 billion.
Recent quarterly reports showed that rapid data center construction is increasing financial pressure on even the largest corporations, which previously had significant cash reserves and relatively low debt.
The exception was Microsoft, which reported cash flow of $18.6 billion.
Against this backdrop, the prospect of a slower expansion of computing infrastructure is seen by investors as an opportunity to reduce capital expenditures without immediately losing existing market advantages.
Shares of smaller data center operators fell sharply
Unlike the largest technology corporations, companies specializing in building and operating artificial intelligence infrastructure came under pressure.
Shares of Applied Digital and Iren lost between 6% and 13%. Investors fear that possible restrictions on data center construction will complicate the implementation of their investment programs.
Such companies actively attract debt financing to expand capacity, betting on continued growth in demand for computing resources.
Yorkville Ives analyst Dan Ives drew attention to the special role of Texas, where, by his estimate, about 25–30% of planned American data center computing capacity is expected to be built.
A change in the political situation in the state could lead to a more gradual development of this infrastructure. In the analyst's view, investors may perceive such a slowdown positively.
Earlier on November 4, American technology stocks were under pressure amid the first election results. However, during trading the situation changed: investors began buying shares of the largest corporations while reducing investments in individual companies dependent on rapid data center construction.
Meanwhile, possible restrictions remain market participant expectations for now. Concrete legislative decisions that could affect the timing of new construction have not yet been made.
