As of Thursday morning, the Nasdaq 100 has fallen over 5%, marking a significant downturn in U.S. stock markets largely driven by concerns surrounding AI data center construction following Tuesday’s election. Major companies affected include Comfort Systems USA, Inc., which plummeted 15%, and Modine Manufacturing Co. and Sterling Infrastructure, Inc., both down 21%. The Philadelphia Semiconductor Index has also reached a six-month low.
Analyst Luke Lango predicts a slowdown in U.S. data center capacity growth, estimating it may be 3% to 5% below plans by 2027 and 15% by 2028 due to anticipated regulatory changes from newly elected Democratic governors in states critical for data center development. Despite these adjustments, Lango asserts that the AI trade isn’t ending but evolving, with significant long-term demand expected—hyperscalers are projected to spend over $1 trillion next year.
In contrast, the solar sector experienced gains after election results, with the Invesco Solar ETF increasing nearly 6% amid market belief that the new Congress may ease restrictions on renewable energy projects. This rise reflects investors’ optimism despite the political landscape remaining unchanged until January.
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