State-Driven Data Center Backlash Reshaping the AI Trade

The Democratic sweep of Congress and a handful of governor races sent stock prices spiraling for so-called neoclouds. With contests swinging toward candidates promising tougher restrictions on building data centers and other infrastructure, investors and management teams are re-assessing the risk of increased cost and delayed timelines. Brad Warden, Senior Portfolio Manager of Science and Tech Funds at Nomura, discusses AI cycle rotations and where the AI buildout could diverge post-Midterms.