Dan Ives says the post-midterm tech selloff is overdone

The Wedbush-turned-Yorkville Ives analyst argues AI spending will keep flowing even as Democratic gains rattle chip stocks Dan Ives of Yorkville Ives says the selloff in tech stocks after the 2026 US midterm elections is overdone, because AI investment will continue regardless of who controls Congress. What happened to tech stocks The midterms on November 4, 2026, delivered Democratic control of both the House and the Senate. Markets did not take the news calmly. On November 5, the Nasdaq Composite fell between 3.7% and 5.5% intraday. The S&P 500 dropped somewhere between 2.1% and 4.4% over the same stretch. Semiconductors led the decline. Nvidia dropped over 8% to 9% on November 5. Why Ives thinks the market got it wrong Ives has warned that the results could slow the pace of data-center construction and AI infrastructure investment in the near term. He specifically flagged potential regulatory challenges in states like Texas, which has been a magnet for data-center development. Ives predicts that 10% of the projected 800-1,000 AI-focused data centers in the US may not be built because of post-election uncertainty. Ives expects Big Tech and hyperscaler capital expenditure to e...