Dan Ives Says 10% of Planned U.S. Data Centers ‘Will Not Happen’: Calls Democratic Sweep A ‘Seismic Shift’ For The AI Buildout

Ives said the election outcome could slow plans for the 800 to 1,000 data centers expected to support the U.S. AI buildout.

• In a post on X, Ives stated that  the Democratic sweep would bring about a “seismic shift” in the “AI revolution.”
• His comments come after Democrats won control of both chambers of Congress on Tuesday.
• U.S. stock futures moved higher following the election. 

Yorkville Ives’ partner Dan Ives said on Wednesday that the Democrats’ sweep of Congress will slow the buildout of data centers that power artificial intelligence.

“We estimate 10% of datacenters will not happen now,” Ives wrote in a post on X. He said the result “will slow the pace of the planned 800 to 1,000 datacenters across the US fueling the AI Revolution.”

According to him, the Democratic “blue tidal wave across the Senate and House” is poised to bring about “seismic shift that will have a negative impact on the pace of the AI Revolution buildout in the US over the next few years.”

US Midterm Election Results

Democrats won control of both chambers of Congress on Tuesday, flipping seven Republican-held Senate seats in North Carolina, Ohio, Iowa, Maine, Kansas, South Carolina and Texas. Races in Mississippi and Alaska were still uncalled at the time of writing.

Futures tied to the Dow Jones Industrial Average jumped 803 points, S&P 500 futures traded 0.85% higher and Nasdaq-100 futures gained 0.31%. The ETFs that track these major indices also rallied. The SPDR S&P 500 ETF (SPY) was up 0.96%, the SPDR Dow Jones Industrial Average ETF (DIA) gained 1.7%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.45% higher at the time of writing. 

Retail sentiment around SPY on Stocktwits continued to trend in ‘bearish’ territory over the past day, with SPY and QQQ among the top trending tickers on the platform.

Ives Sees Further Downside For Chip Stocks

Ives’ comments reiterate a warning he gave the day before. In an interview with CNBC, he said U.S. data center plans for the next 12 to 18 months could be cut by 10% to 15%. He said the period would be “a gut check moment, not just for investors, but for these companies.” Ives also forecast that chip stocks would fall another 10% to 12% before bottoming. 

In early morning trade on Wednesday, the iShares Semiconductor ETF (SOXX) was edging 0.4% lower. On Stocktwits, retail sentiment around the fund trended in ‘bullish’ territory over the past day, alongside ‘high’ levels of chatter. 

Lattice Semiconductor (LSCC) and Credo Technology (CRDO)  led gains in the sector. LSCC stock gained over 10% in pre-market trade, while CRDO stock jumped almost 8%. Laggards included Marvell Technologies (MRVL), Entegris (ENTG) and Intel (INTC).

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