# Steve Weiss on AI Spending After Midterms

> Midterms capped AI spending as Texas data center permits freeze hits chipmakers.
- Title: Steve Weiss on AI Spending After Midterms · 24/7 Wall St.
- Summary: Midterms capped AI spending as Texas data center permits freeze hits chipmakers. Democrats' midterm wins triggered a Texas data center permit freeze…
- Keywords: steve weiss, texas, data centers, ai spending, vertiv, vistra, nvidia, broadcom, midterms, chipmakers, 401k, ai infrastructure
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/11/04/steve-weiss-says-the-midterms-just-put-a-lid-on-ai-spending-heres-who-could-get-hurt
- Author: Chris Lange
- Published: 2026-11-05T00:09:14+00:00
- Read time: 1 min
- Topics: steve weiss, texas, data centers, ai spending, vertiv, vistra, nvidia, broadcom, midterms, chipmakers, 401k, ai infrastructure
## Midterms Capped AI Spending
Democrats swept the midterms, but chipmakers barely flinched as two ai data center stocks dropped sharply.

> The market is seeing the democratic victory as forced control on capex
## Texas Permit Freeze
Texas governor Gina Hinojosa promised a moratorium on data center construction after beating Greg Abbott.

> Gina hinojosa beat gov. greg abbott after promising a moratorium on data center construction and an end to subsidies and tax breaks for major developers
## Data Center Selloff
Vistra and Vertiv fell 13-12 percent as investors priced in texas data center slowdown.

> Vistra (nyse:vst | vst price prediction) $120.29 -13.83% vertiv (nyse:vr t) $205.55 -12.89%
## Chipmakers Less Affected
Nvidia and Broadcom dropped less as global data center projects can shift to other states or countries.

> If there’s going to be less data center build-out, there’s going to be pressure on the chips
## Texas Power Impact
Texas permit freeze directly hits local power sellers like Vistra, which saw shares drop 13.83 percent.

> Vistra traded in a wide range during the session. shares opened at $217.165 and hit a low of $202.585, before closing at $205.55
## Political Pushback
Morgan Stanley said texas governor would still face a republican legislature limiting changes to data center rules.

> In texas, the incoming democratic governor would still face a republican controlled state legislature, limiting the scope for some of the more ambitious changes
## Retirement Investors at Risk
401(k) investors could lose value as ai-heavy funds face reduced chipmaker spending.

> Broad index funds carry large positions in chipmakers and the cloud providers funding the expansion, so a capex slowdown would reach 401(k) balances even for investors who never bought an ai stock directly
## Key takeaway

Democrats' midterm wins triggered a Texas data center permit freeze, reducing AI infrastructure spending and hurting power companies like Vertiv and Vistra.