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Dan Ives says the post-midterm tech selloff is overdone

Dan Ives says the post-midterm tech selloff is overdone

Photo: Ruben Reyes / Pexels

The Wedbush-turned-Yorkville Ives analyst argues AI spending will keep flowing even as Democratic gains rattle chip stocks

by Diego Almada Lopez

2 min read

In AI

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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.

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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 exceed $1 trillion in 2027, even with some delays to AI-focused data center construction.

The near-term pain he still expects

Ives projects a near-term downside of 10-12% for semiconductor stocks.

He maintains a long-term bullish outlook on AI, but he is not promising a painless ride in the weeks ahead.

Who he thinks comes out ahead

Ives has identified Apple, Microsoft, Alphabet, Amazon, Meta, Palantir, Snowflake and CrowdStrike as key post-election tech winners.

Not the only bull in the room

Ives is not alone in reading the dip as an opportunity. Analyst Tom Lee projects a potential 20% rally in tech stocks following the election selloff.

What this means for investors

Ives has staked his thesis on spending clearing $1 trillion in 2027. Any sign that Microsoft, Amazon, Alphabet or Meta are trimming their infrastructure budgets would undercut the argument quickly.

Ives sees more near-term downside for semiconductors while naming software and platform names as winners. That suggests a rotation within tech rather than a blanket recovery.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.

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