U.S. midterm elections have triggered policy uncertainty, compounded by anxiety over returns on AI investments. Trillions of dollars in market value have evaporated from tech giants, while Nvidia faces risks to the sustainability of its growth due to its deep dependence on the pace of downstream infrastructure development.
1. On November 5, the “Magnificent Seven” lost a combined approximately $1.04 trillion in market value in a single day. Nvidia plunged 9.26%, shedding more than $440 billion in market value—two to four times the losses of Microsoft, Google, and Amazon. The Nasdaq fell 5.52% that day, down 3.4% for the week.
2. On Election Day, voting on 41 local ballot measures related to data centers across 10 U.S. states favored restrictions on data center development in 40 cases; 27 restrictive or oppositional measures passed. Texas’s newly elected governor pledged to halt all data center construction until dedicated legislation is enacted.
3. SemiAnalysis estimates that the election’s real impact is on data centers planned for 2028. Texas alone accounts for nearly 30% of the new computing capacity projected to come online in the U.S. in 2028, so policy changes may primarily affect expectations for Nvidia’s growth in 2028 and beyond.
4. A year ago, the combined operating cash flow of Microsoft, Google, Amazon, and Meta exceeded their capital expenditures by approximately $61.7 billion. By the third quarter of this year, that had turned into a shortfall of about $26.4 billion. Google’s long-term debt rose from around $20 billion to $125 billion, while Amazon’s free cash flow over the past 12 months shifted from a net inflow of $14.8 billion to a net outflow of $42.4 billion.
5. The five largest cloud providers issued a combined approximately $121 billion in dollar-denominated debt in 2025, more than four times the annual average of the previous five years. The 10-year U.S. Treasury yield remains above 4.8%, and rising financing costs are becoming a key factor affecting the pace of data center expansion.
6. Nvidia’s net income in its most recent fiscal quarter approached $60 billion, and revenue is forecast to rise another 12% sequentially next quarter. However, more than 90% of its revenue depends on data centers. The company’s next earnings report, due November 17, will be an important test of its growth prospects.
1. On November 5, the “Magnificent Seven” lost a combined approximately $1.04 trillion in market value in a single day. Nvidia plunged 9.26%, shedding more than $440 billion in market value—two to four times the losses of Microsoft, Google, and Amazon. The Nasdaq fell 5.52% that day, down 3.4% for the week.
2. On Election Day, voting on 41 local ballot measures related to data centers across 10 U.S. states favored restrictions on data center development in 40 cases; 27 restrictive or oppositional measures passed. Texas’s newly elected governor pledged to halt all data center construction until dedicated legislation is enacted.
3. SemiAnalysis estimates that the election’s real impact is on data centers planned for 2028. Texas alone accounts for nearly 30% of the new computing capacity projected to come online in the U.S. in 2028, so policy changes may primarily affect expectations for Nvidia’s growth in 2028 and beyond.
4. A year ago, the combined operating cash flow of Microsoft, Google, Amazon, and Meta exceeded their capital expenditures by approximately $61.7 billion. By the third quarter of this year, that had turned into a shortfall of about $26.4 billion. Google’s long-term debt rose from around $20 billion to $125 billion, while Amazon’s free cash flow over the past 12 months shifted from a net inflow of $14.8 billion to a net outflow of $42.4 billion.
5. The five largest cloud providers issued a combined approximately $121 billion in dollar-denominated debt in 2025, more than four times the annual average of the previous five years. The 10-year U.S. Treasury yield remains above 4.8%, and rising financing costs are becoming a key factor affecting the pace of data center expansion.
6. Nvidia’s net income in its most recent fiscal quarter approached $60 billion, and revenue is forecast to rise another 12% sequentially next quarter. However, more than 90% of its revenue depends on data centers. The company’s next earnings report, due November 17, will be an important test of its growth prospects.