NVIDIA shares rose against the trend, and the Democratic Party's election victory has not yet shaken AI chip demand.

on November 04, despite the possibility that the Democratic Party’s electoral victory could lead to stricter restrictions on data center construction, NVIDIA’s shares rose on Wednesday. Positive earnings reported by major chip industry players indicate that market concerns over delays in data center construction have not yet immediately impacted NVIDIA and other hardware companies. Customers are still scrambling to stockpile artificial intelligence hardware, even though it remains uncertain whether suitable facilities will be available in the future to house these devices. The defeat of Republican governors in Texas and Ohio implies that AI infrastructure projects will face heightened scrutiny.

“Enhanced congressional oversight does not necessarily derail the AI investment cycle. Comprehensive federal restrictions would encounter legislative and executive hurdles, while state and local regulations remain the primary factors affecting data center development timelines and siting,” Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, wrote in a research report. If Democratic policymakers actually push for stringent limits on AI data centers, NVIDIA will confront greater headwinds down the line. For now, however, the market is primarily focused on indications of resilient chip demand amid the company’s recent stock underperformance. (Jinshi)