Amid a powerful rout in tech stocks, investors told CNBC on Thursday that something may be fundamentally breaking in the AI trade following the big success of Democrats in Tuesday's midterm elections and the threat they try to slow the data center buildout.
Democrats are more aggressively anti-data center than Republicans, and Wall Street is quickly redoing its math what any restrictions they implement could mean for the related companies' future growth.
"Right now, investors are questioning that $1.2 trillion of capex that we forecast for next year," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, told CNBC. "Well, maybe that's not going to happen."
Boockvar believes this could be the start of the end of the AI trade as we know it.
Whether it's completely over or not, investors need to be reassessing how they're planning to play the AI trade going forward, the analysts said.