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AI and tech stocks could be in trouble after Democrats pulled back control of the Senate from Republicans in the Midterm elections. That's because Democrats don't have as positive of a view on AI as Republicans do. This could result in changes in AI legislation and delays to the building of data centers.

Data center delays are something that AI companies are already seeing in Texas. This is due to Democrat candidate Gina Hinojosa beating Gov. Greg Abbott to become the first Democratic governor of Texas since 1995. She campaigned on plans to pause new data center projects in the state until more safeguards are in place. That's worth highlighting, as Texas was on track to become a major hub for data centers.

On that same note, the Democratic win in Texas likely hasn't been received well by Elon Musk. The Tesla (TSLA) and SpaceX (SPCX) founder moved to the state after running into disagreements with Democratic leaders in California. Now, he'll have to work with Democrats again in Texas. Additionally, Musk is among the entrepreneurs knee-deep in the AI buildout. SpaceX's SpaceXSI is dedicated to AI development and is behind the GrokAI assistant that is prominently featured on X, the social media platform formerly known as Twitter, which Musk bought in October 2022.

How Did AI and Tech Stocks React to Today's Midterm Election Results?

AI and tech stocks experienced strong movement today, though it wasn't purely positive or negative.

• Nvidia (NVDA) stock dropped 1.32% this morning.
• Advanced Micro Devices (AMD) stock rallied 2.28%.
• Micron (MU) stock slipped 2.99% as of this writing.
• SanDisk (SNDK) stock dove 3.54% on Wednesday.
• Western Digital (WDC) stock dipped 1.54% today.
• Microsoft (MSFT) stock jumped 5.8% at the time of writing.
• Amazon (AMZN) stock soared 6.83% this morning.

Which of These AI and Tech Stocks Are Worth Buying After Midterms?

Turning to the TipRanks' stock comparison tool, traders can see which of these stocks analysts favor. Interestingly enough, all of the stocks in this list have Strong Buy consensus ratings, mirroring the strength of the AI boom under Republican leadership. However, some have much more upside potential than others. Micron stands out with its 92.53% upside, the highest among its peers. Other stocks worth considering based on their strong upside potential are SanDisk at 87.5% and Western Digital at 70.8%.

One thing investors will want to watch for is updated coverage from analysts. Today's midterm results could sway analyst opinions as Democrats introduce stricter rules around AI. The Democratic-controlled Senate could also get in the way of Trump's AI buildout and funding plans. This could see analysts change their ratings and price targets for AI stocks. (See AI Stock Comparisons)