SpaceX, Tesla stocks sink as analyst warns Democrats' victory will create 'major hurdles' for AI build-out

One of Wall Street's biggest AI bulls says the sweeping Democratic victory in the midterm elections will slow the pace of the AI data center build-out in the US over the next two years. Data center-related stocks dropped, including Elon Musk-led SpaceX (SPCX) and Tesla (TSLA), which fell 7% and 5%, respectively. Neocloud provider CoreWeave (CRWV) and data center-related companies IREN (IREN) and Vertiv (VRT) also traded lower on Wednesday after Democrats won a majority in the House and Senate on Tuesday night and flipped governorships across key states.