Bad memory: Some chip stocks are tumbling despite the broader post-election rally for tech. Here’s why
Tuesday’s blue tsunami didn’t just boost the Democrats’ fortunes. The 2026 midterm results also fueled a surge in the stock market, with all but a few Big Tech stocks seeing notable gains. But memory chip stocks told a different story. Shares in the four major memory chipmakers all saw steep declines. And those declines are continuing today. Here’s what you need to know. The midterm results…
The midterm elections brought Democrats a decisive victory, boosting the stock market with a strong performance from Big Tech companies. However, memory chip stocks experienced a sharp decline, continuing their downward trend. The main concern for investors is that the election outcome may lead to restrictions or moratoriums on the construction of data centers, as many Democrats running for office campaigned on anti-AI and anti-data center platforms.
Since data centers rely on servers that require substantial RAM, a slowdown in data center expansion would negatively impact the demand for memory chips, leading to reduced profits for memory chipmakers. A recent NBC and SSRS exit poll revealed that around 76% of voters opposed new data centers, potentially causing a significant slowdown in AI development, as warned by tech billionaires and investors.
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