Gotrade News - AI and data center stocks fell in overnight trading early Wednesday after the Associated Press projected Democrat Gina Hinojosa would defeat Texas Gov. Greg Abbott, according to CNBC. CoreWeave (CRWV) dropped 7% and SpaceX (SPCX) 6%, as Hinojosa has backed a moratorium on AI data centers.
Per CNBC, Nasdaq-100 futures were down 0.8%, more than double the decline in Dow Jones Industrial Average futures, while the State Street Technology Select Sector SPDR ETF (XLK) was down 2% in overnight trading on the Robinhood platform. Nebius Group (NBIS) and Oracle (ORCL) each lost 4%. Markets were already anticipating Democrats to win the House and possibly take Senate control, CNBC reported, and the Texas governor's race was seen as the bigger risk for tech stocks.
CRWV, SPCX, NBIS and ORCL Market Data
| Ticker | Close | Daily change | 52-week range |
|---|
| CRWV | $53.74 | +7.16% | $49.46 to $138.25 |
| SPCX | $141.31 | +3.62% | $104.83 to $225.64 |
| NBIS | $151.64 | +7.25% | $73.52 to $299.86 |
| ORCL | $126.19 | +5.85% | $114.50 to $255.28 |
Regular-session close on November 3, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. 52-week range: Yahoo Finance daily highs and lows since November 4, 2025.
CoreWeave (CRWV): Why Is the Neocloud Stock Down 7%?
CoreWeave fell 7% on Robinhood because the Texas result raised doubts about where new data centers will be built, according to CNBC, which describes the company as a high-risk neocloud that uses borrowed money to build data centers.
Scott Ladner, chief investment officer of Horizon Investments, told CNBC that "the one thing that could really end up moving stuff though would be if Abbott were to lose Texas." He described Texas as fertile ground for data centers that would become "largely barren" if Abbott lost.
"Because there is a legitimate question about where do you build these data centers?"
Scott Ladner, chief investment officer, Horizon Investments, as quoted by CNBC
SpaceX (SPCX): Texas-Headquartered Stock Slips 6%
SpaceX, which CNBC called Elon Musk's AI data play, was off 6% in overnight trading, as reported by CNBC. CNBC noted that SpaceX is headquartered in Texas, where the governor's race result weighed on AI stocks overnight.
Nebius Group (NBIS) and Oracle (ORCL) Each Fall 4%
Nebius Group, a CoreWeave peer, fell 4%, and Oracle lost 4% on Robinhood, according to CNBC. The drops came with the tech sector already under pressure: the Nasdaq-100 fell into correction territory at the end of October amid concerns that data center spending growth by hyperscalers and AI firms such as OpenAI and Anthropic was slowing, CNBC reported.
How Much Planned US Data Center Capacity Is in Texas?
Texas holds 27% of planned US data center gigawatts, according to Wells Fargo figures cited by CNBC, which also gave the shares for Georgia, Ohio and Pennsylvania:
| State | Share of planned US data center gigawatts (Wells Fargo, via CNBC) |
|---|
| Texas | 27% |
| Georgia | 7% |
| Ohio | 5% |
| Pennsylvania | 5% |
Democrats were projected to win or retain the governorships in Georgia, Ohio and Pennsylvania as well, CNBC reported.
Ohsung Kwon, chief equity strategist at Wells Fargo, wrote that the equity market reaction from the midterms mostly depends on the outcome of the Texas governor's race, per CNBC.
What Has Gina Hinojosa Said About Data Centers?
Hinojosa has called for "a moratorium on data centers until the legislature can meet to put in place real protections," according to an August 10 statement from her campaign. In the same statement, she argued that Abbott's data center guidelines "aren't laws, they won't protect Texans."
The Associated Press called the race for Hinojosa at 10:17 p.m. on election night, as reported by KUT and The Texas Newsroom. With most of the reported vote counted, she had about 57% to Abbott's roughly 41%. Abbott conceded, saying "mathematically, we are not going to be able to win this election." Hinojosa takes office in January 2027 as the first Democrat to hold the office since Ann Richards left in 1995, per KUT.
Midterm Data Center Risk: Bank of America and Optimal Advisory Warnings
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, according to CNBC.
The Washington policy team at Optimal Advisory wrote that "data centers went from being a popular economic development tool in 2024 and 2025 to something of a pariah" during the midterm campaigns. The team added that "the midterms are likely to send a message to local and state officials that there is a political upside to blocking, delaying and/or raising the cost of data centers," CNBC reported.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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