Democrats' midterm election sweep sent shares in US tech giants soaring on Wednesday as investors bet that potential curbs on new data-center construction could cement their grip on scarce computing power while easing pressure on strained cash flows.
Shares of Amazon surged 7.4% to a three-month high while Meta Platforms, Alphabet and Microsoft gained between 2% and 6.3%, powering a rally on Wall Street after days of selling fueled by fears over the AI boom's soaring costs.
Apple, which has avoided Big Tech's massive AI spending but is feeling the sting of an AI-fueled surge in memory chip prices, jumped nearly 7% to a record high.
If the gains hold, the five companies are on course to add more than $750 billion in combined market value.
The rally marks a sharp reversal for the battered cloud giants after their quarterly earnings showed how the AI infrastructure race was turning once cash-rich, debt-light companies into heavy spenders reliant on borrowing. Microsoft was the notable exception, with $18.6 billion in cash flow.