Key facts
- Amazon shares rose 7.4% to a three-month high on Wednesday, November 4, 2026, Reuters reported.
- Meta Platforms, Alphabet and Microsoft shares gained between 2% and 6.3% on Wednesday, November 4, 2026.
- Apple shares rose nearly 7% to a record high on Wednesday, November 4, 2026.
- Applied Digital and Iren shares fell between 6% and 13% on Wednesday, November 4, 2026.
- Art Hogan of B. Riley Wealth said slower data-center build-out would mean slower capital spending by hyperscalers.
- Dan Ives of Yorkville Ives said Texas accounts for roughly 25% to 30% of data-center gigawatts and capacity.
Shares in US tech giants rose on Wednesday, November 4, 2026, after Democrats' midterm election sweep, with investors betting that potential curbs on new data-center construction could cement their grip on scarce computing power while easing pressure on strained cash flows, Reuters reported.
Amazon shares rose 7.4% to a three-month high, while Meta Platforms, Alphabet and Microsoft gained between 2% and 6.3%. Apple, which has avoided Big Tech's AI spending but is feeling the effect of an AI-driven rise in memory chip prices, jumped nearly 7% to a record high. If the gains held, the five companies were on course to add more than $750 billion in combined market value, Reuters reported.
The rally followed landslide midterm victories for Democrats who oppose data centers, including in Texas, which could accelerate a backlash against the power-hungry, water-intensive facilities at the heart of the AI boom but increasingly unpopular with local communities.
"Conceptually, post-election, there may be a bit of a slowdown or some bumps in the road for future data-center build-out," said Art Hogan, chief market strategist at B. Riley Wealth. He said hyperscalers already have data centers, making those assets more valuable, and that a slower build-out pace would mean slower capital spending.
The tech giants have been spending at a rapid pace, with plans to spend more than $750 billion this year, up from roughly $400 billion last year, according to the report. Smaller AI cloud rivals such as Applied Digital and CoreWeave have been spending far more than their revenue to meet order backlogs. Shares of Applied Digital and Iren fell between 6% and 13% on fears that curbs on data-center construction could derail their debt-fueled expansion plans.
"The biggest worry of the night for tech investors and the AI trade was around the state of Texas, where ~25%-30% of data-center gigawatts and capacity will come from," said Dan Ives, senior managing director and tech analyst at Yorkville Ives. He said the build-out would now happen at a more measured pace.