Tech stocks plummeted this week as US midterm election results triggered a 6% Nasdaq 100 drop, reflecting growing public opposition to AI infrastructure. Voters across the political spectrum rejected data center projects, backing over 40 local proposals to slow development. The anti-tech sentiment hardened into a partisan issue, with Democrats framing it as a policy priority after winning key governorships in Georgia and Ohio.
Tech leaders, particularly Elon Musk, face intensified scrutiny after his $500 million in Republican campaign donations yielded minimal political returns and deepened public animosity. This hostility threatens AI revenue growth and valuation models, potentially curtailing the IPO plans of companies like Anthropic. For neocloud startups like Core Weave, the setback compounds existing market corrections, with shares dropping 25%.
Even Space X felt the impact, falling below IPO price. Investors now brace for a challenging 2028 election season as permitting battles extend through 2028 and beyond, signaling a fundamental rethink of tech's political strategy is urgently needed.
Source: Financial Times Companies · Summarized by HeadlinesBriefing