Shares in some of the world’s largest technology companies climbed on Wednesday after Democrats won control of both chambers of Congress in the midterm elections. Amazon rose 8%, Google gained more than 6%, Microsoft added 4% and Meta advanced 3%. Apple, which has faced tariffs and recently received refunds, rose nearly 7%.

David Kelly, chief global strategist at JPMorgan Asset Management, said the results had reduced market uncertainty. He pointed to the prospect of divided government as a factor supporting stocks, citing the potential for more moderate growth and inflation.

The gains were not shared across the technology sector. Tesla fell 2%, SpaceX declined 3% and Nvidia slipped just over 1%. Smaller AI cloud provider CoreWeave dropped 10% as investors weighed the potential impact of opposition to new data center projects.

Voters backed measures opposing data centers in 40 of 41 local ballot questions, according to the report. A CNBC Voter Poll found that 56% of voters considered data centers a crucial or major factor in their voting decision. Democratic candidates who supported data center moratoriums also won gubernatorial races in Texas, Georgia and Ohio, raising concerns that some projects could face tighter regulation or be blocked.

The election results may benefit established cloud companies, known as hyperscalers, which have substantial capital spending, strong free cash flow and experience building AI data centers. Needham analyst Laura Martin said higher regulatory barriers could strengthen the position of these established operators while raising risks for new entrants.

By contrast, Baird analysts described the results as a potential “sentiment headwind” for neocloud providers. Macquarie analyst Paul Golding said well-funded operators could be better placed if projects slow in some states, while competition for limited data center capacity could intensify.

The results do not necessarily point to a nationwide halt in construction, said Chris Miglino, CEO of Axe Compute. He said companies are still raising capital and businesses continue to need more computing capacity. Greater regulation in some regions could also lead customers and investors to favor providers that can deliver capacity or serve specific industry needs.

Sources: CNBC Markets.