How the midterms could fuel the K-shaped AI trade

Democratic wins in the 2026 U.S. midterms may lead to stricter data center permit rules, benefiting established tech giants like Microsoft and Amazon with existing capacity while disadvantaging newer, debt-reliant firms such as CoreWeave. This regulatory shift has caused stock surges for major players and declines for smaller AI infrastructure providers and chipmakers, reflecting concerns over financing and supply constraints in AI data center expansion.