Which stocks fell after the Texas result?

SpaceX shares were down 4% after the open and Tesla fell 5%, while neoclouds CoreWeave and Iren each dropped 4% in morning trading. Nebius Group was down about 0.5%, Oracle rose 2%, and Nvidia shares were slightly in the red.

How much did Elon Musk spend on the midterms?

Musk spent a record of at least $474 million on the midterms and funneled $224 million into Texas alone, where Republican Senate nominee Ken Paxton and Gov. Greg Abbott lost to Democrats.

Why is Texas so important to the AI data center buildout?

Wells Fargo estimates 27% of planned data center gigawatts is in Texas, and analyst Dan Ives said around 25%-30% of data center gigawatts and capacity will come from the state.

AI Stocks & MarketsTop Companies' AI MovesAI Business & IndustryTop Companies AI10m agoNov 9, 2026, 06:30 JST

Gina Hinojosa win in Texas deals blow to AI data center trade

Send on LINE

3 Key Points

What happened
Democrat Gina Hinojosa, who wants an immediate moratorium on data centers in Texas, beat Republican Gov. Greg Abbott. Wells Fargo estimates 27% of planned U.S. data center gigawatts are in Texas, and analysts called the result a major blow to the AI trade.
Why it matters
That concentration means a single state election can slow the pace of U.S. data center buildouts, and the result adds pressure on a trade already weakened as the Nasdaq-100 fell into correction territory to end October.

Not sure about something? Ask the AI

Questions and answers are published on this page.

Summaries like this, every morning.

Get these free every morning

Context & Analysis

The Texas outcome did not arrive in isolation. The Nasdaq-100 index had already fallen into correction territory to end October as concerns mounted that data center spending by big hyperscalers and private AI companies OpenAI and Anthropic was slowing. Wells Fargo's chief equity strategist, Ohsung Kwon, had warned in a report this week that the equity market reaction from the midterms mostly depended on the Texas governor's race, calling a Democratic win a potential left-tail event for the AI trade. Bank of America's Michael Hartnett warned earlier this year that Democrats winning the Senate combined with taking the Texas governorship could lead to a big slump in stocks of more than 10% into year-end. The result also landed personally for Elon Musk, who spent a record of at least $474 million on the midterms and $224 million in Texas, where Tesla and SpaceX are based. His response on X — "Data centers in space looking pretty appealing right now" — pointed to his speculative plans to build AI infrastructure off-planet, a sign that at least one major builder is already looking beyond state politics.

FAQ

Which stocks fell after the Texas result?: SpaceX shares were down 4% after the open and Tesla fell 5%, while neoclouds CoreWeave and Iren each dropped 4% in morning trading. Nebius Group was down about 0.5%, Oracle rose 2%, and Nvidia shares were slightly in the red.
How much did Elon Musk spend on the midterms?: Musk spent a record of at least $474 million on the midterms and funneled $224 million into Texas alone, where Republican Senate nominee Ken Paxton and Gov. Greg Abbott lost to Democrats.
Why is Texas so important to the AI data center buildout?: Wells Fargo estimates 27% of planned data center gigawatts is in Texas, and analyst Dan Ives said around 25%-30% of data center gigawatts and capacity will come from the state.

AI news that matters for your work, delivered every morning.

Pick your industry and the AI tools you use, and get news related to your work every day.

Get it free

Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →

Ask AI

Ask AI anything about this article. The AI reads this article, earlier AIToday articles, and Wikipedia, and cites its sources. Q&As are published on this page for other readers too.