AI-related stocks were sold off again this week, though some names that had fallen more sharply staged a strong intraday rebound on Thursday, with companies including CoreWeave recovering part of their losses. As the U.S. midterm election on Nov. 3 draws closer, investors are also watching a separate risk tied to politics and regulation. If Democrats deliver better-than-expected results in congressional and state-level races, policy uncertainty around data center construction, artificial intelligence oversight, and taxes on technology companies could weigh further on stocks across the AI supply chain. For now, the pullback in U.S. technology shares has not stopped Wall Street analysts from looking for another round of strong earnings. Still, IDX Advisors Chief Investment Officer Ben McMillan said criticism of data centers from Democrats is intensifying, calling it a practical risk for the AI trade. He added that he has been closely tracking both national and local polling, and said action aimed at AI data centers appears to be becoming a core Democratic issue.
AI-related stocks were hit by another round of selling this week, although some of the harder-hit names posted a strong intraday rebound on Thursday. Shares of companies including CoreWeave also recovered part of their recent losses.
With the U.S. midterm election on Nov. 3 approaching, investors are facing another source of risk. If Democrats win by a wider-than-expected margin in congressional and state-level elections, policy uncertainty tied to data center construction, artificial intelligence regulation, and taxes on technology companies could put additional pressure on AI supply-chain stocks.
So far, the correction in U.S. technology shares has not derailed Wall Street analysts' expectations for another round of strong earnings. Even so, IDX Advisors Chief Investment Officer Ben McMillan said Democratic criticism of data centers is heating up, and that could become a real risk for the AI trade.
McMillan said he has been closely watching polling at both the national and local levels. He added that moves targeting AI data centers appear to be turning into a core Democratic issue.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
