Wall Street delivered a split on Wednesday, with chip stocks sliding despite strong earnings while Big Tech was rewarded on the view that slower AI infrastructure spending could benefit existing hyperscalers. The article links the pressure to the midterm elections, in which Democrats swept both chambers of Congress and flipped Texas's governor's race; Governor-elect Gina Hinojosa campaigned on a moratorium on new data-center approvals until lawmakers establish stronger protections for electricity, water and local communities. Texas accounts for an estimated 41% of new U.S. data-center capacity planned for 2028, according to SemiAnalysis, raising fears that tighter regulation, permitting delays and local opposition could slow data-center construction. The logic behind the trade is that less pressure to build new capacity could improve free cash flow for Microsoft, Amazon and Alphabet while benefiting from the scarcity value of existing data centers, with Apple also viewed as a potential beneficiary due to relatively little AI infrastructure spending. Meanwhile, semiconductor suppliers and data-center operators face risks of delayed projects and weaker future orders. Yet cloud executives recently reaffirmed AI infrastructure commitments: Microsoft said Azure revenue grew 48% and expects quarterly CapEx to exceed $50B in Q2 FY2027; Alphabet maintained its $195B–$205B 2026 CapEx guidance; Amazon said AWS grew 39.3% with a $578B backlog and maintained its $220B 2026 cash CapEx outlook.