AI stocks retreat as Democratic sweep puts data centre boom in focus
AI-related stocks came under pressure on Wednesday despite a broader Wall Street rally following the Democratic sweep of Congress. Data centre companies CoreWeave, Iren and Nebius fell, alongside Nvidia and Marvell, as investors weighed concerns over rising power costs, job losses, political scrutiny and debt-funded AI spending.
Wall Street's rally following the Democratic victory in Congress did not extend to several companies benefiting from the AI boom. Data centre builders and associated technology stocks experienced a decline on Wednesday as investors considered the potential for increased political scrutiny on the rapid expansion of the industry, according to Bloomberg.
CoreWeave, Iren, and Nebius all fell, while power equipment manufacturers GE, Vernova, and Vertiv also faced pressure. Chipmakers Nvidia and Marvell Technology also slipped, despite the Nasdaq 100 rising over 1%.
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