AI Infrastructure Stocks Slide Even as the Market Rallies on Election Results

The post-election rally had a big hole in it: artificial intelligence.

Nvidia fell 3%, and an exchange-traded fund that tracks AI infrastructure stocks dropped 9%, even as the Dow soared ^[1]. Microsoft gained nearly 7%, while Vertiv, which supplies power and cooling for data centers, lost nearly 13% ^[2].

The Associated Press reported that investors see Democratic wins in Texas in particular as a possible brake on the build-out of new AI data centers. AI stocks were already under pressure before Election Day on worries their prices had climbed too high ^[3].

Texas has been one of the busiest states for data-center construction, thanks to cheap land and power. A new governor and legislature with different priorities could slow permits, raise costs or change who pays for grid upgrades.

For investors who rode the AI trade all year, Wednesday was a warning. Code & Coin will be watching whether it was a one-day wobble or the start of something bigger.