Key takeaways
- CoreWeave fell 10.2% to $48.27 at 18:48 UTC on November 4; Nebius fell 7.1% and Dell 8.8%.
- 24/7 Wall St. ties the selloff to Democratic wins in Congress and Texas, where governor-elect Gina Hinojosa campaigned for a data center moratorium.
- Wells Fargo estimates Texas holds 27% of planned U.S. data center capacity; CoreWeave reports earnings on November 10.
CoreWeave stock fell 10.2% on November 4, to $48.27 at 18:48 UTC, as AI infrastructure shares sold off after Democrats won Congress and the Texas governor's race. Investors are worried that a Democratic-led Congress and a Texas governor who wants a pause on new data centers will slow the AI buildout, according to a 24/7 Wall St. report.
None of the companies has said its plans have changed. The move is a reaction to politics, not to a filing or a contract.
How far the stocks fell
Prices are from Yahoo Finance, read at 18:48 UTC on November 4.
| Stock | Price | Latest session | Last five sessions |
|---|---|---|---|
| CoreWeave (CRWV) | $48.27 | down 10.2% | down 20.5% |
| Nebius (NBIS) | $140.93 | down 7.1% | down 18.1% |
| Dell (DELL) | $372.37 | down 8.8% | down 21.7% |
Earlier in the day, 24/7 Wall St. had CoreWeave down 4%, IREN down 5% at $23.33 and Nebius down 2%, so the selling deepened after the morning. It also noted that the Invesco QQQ Trust, a fund tracking the Nasdaq 100, rose during the selloff, which points to selling concentrated in data center names. Other big tech stocks rose that day, including Microsoft, up 6.6%, and Amazon, up 6.8%.
Why Texas matters
Democrat Gina Hinojosa beat Gov. Greg Abbott on November 3. She campaigned for tougher limits on new data centers, including an immediate moratorium, 24/7 Wall St. reports. Wells Fargo estimates Texas holds 27% of planned U.S. data center capacity, measured in gigawatts, ahead of Georgia at 7% and Pennsylvania and Ohio at 5% each.
Dan Ives of Yorkville Ives & Co. called the Texas race the "biggest worry" of the night for AI investors, according to the same report. Ohsung Kwon, Wells Fargo's chief equity strategist, had warned before the vote that a Democratic win in Texas could be a "left-tail event" for the AI trade, meaning a low-probability, high-damage outcome.
IREN has a 50 MW deployment at its Childress, Texas campus and is building 200 MW of liquid-cooled capacity at Sweetwater 1. Nebius has announced up to 1.2 gigawatts in Pennsylvania and discloses no Texas site, per the report.
What we don't know
A governor cannot stop construction on her own, and it is unclear what a moratorium would cover or when it could take effect. Whether the new Congress passes anything on AI or data centers is also open.
CoreWeave reports earnings on November 10 after the close, according to Nasdaq's calendar. That is the first chance to hear management on demand and financing since the election. For background on the AI buildout's financing, see our report on Oracle's $20 billion stock and bond sale. This is a report on what happened, not advice on any stock.
