Schulz Duggan(@Schulz_Research):$SNDK $MU $WDC $STX Since the Election Day close, $SNDK is down 24%, $STX 22%, $WDC 20% and $MU 19.5%. Over the same two sessions $MSFT is up 3.8%, $AMZN 2.5% and $GOOGL 1.3% ($META is the exception, down 4.7%). The market read the Democratic sweep as a cut to AI capex and billed it to the companies that sell into the buildout. The post everyone is pointing at came on Wednesday from Arizona Rep. Yassamin Ansari: "Top of the Democratic agenda on day 1 needs to be a pause on advanced AI development, regulation of this out of control industry, and a ban on artificial superintelligence." It's past 8 million views. The bill behind it already exists. Bernie Sanders and Greg Casar put out the Ban Artificial Superintelligence Act in September. It would pause advanced AI development until a new federal regulator writes safety rules, with prison terms of up to 20 years. Ansari is one of its House cosponsors. Turning that into law is a much longer road. The new Congress is sworn in on January 3. Trump said this week he would block Democratic legislation, and a veto override needs two-thirds of both chambers. Democrats have around 54 Senate seats against the 67 an override takes, and House Democratic leader Hakeem Jeffries hasn't committed to backing the bill. So I'd put a federal pause close to zero for 2027. What did go up is the risk of slower building. Data centers were on 41 local ballots in 10 states on Tuesday, by Ballotpedia's count, and a Democratic Congress can lean on permits, power and water without ever passing a ban. Memory also has a problem of its own this week. Qualcomm said rising memory costs pushed phone prices up and hurt demand, and its handset chip revenue came in at $5.14bn against a $5.21bn estimate. That's high DRAM prices showing up as lost phone units, and it has nothing to do with Washington. The buyers going up fits a slower buildout: less capex, more free cash flow. Memory gets the other side of that trade, because 2027 estimates assume no slowdown at all. Nothing can pass before January 3, so the next real data point is hyperscaler capex guidance. Which comes first: a hyperscaler trimming its 2027 capex plan, or the memory names getting this 20% back?

2026.11.05 16:20

$SNDK $MU $WDC $STX Since the Election Day close, $SNDK is down 24%, $STX 22%, $WDC 20% and $MU 19.5%. Over the same two sessions $MSFT is up 3.8%, $AMZN 2.5% and $GOOGL 1.3% ($META is the exception, down 4.7%). The market read the Democratic sweep as a cut to AI capex and billed it to the companies that sell into the buildout. The post everyone is pointing at came on Wednesday from Arizona Rep. Yassamin Ansari: "Top of the Democratic agenda on day 1 needs to be a pause on advanced AI development, regulation of this out of control industry, and a ban on artificial superintelligence." It's past 8 million views. The bill behind it already exists. Bernie Sanders and Greg Casar put out the Ban Artificial Superintelligence Act in September. It would pause advanced AI development until a new federal regulator writes safety rules, with prison terms of up to 20 years. Ansari is one of its House cosponsors. Turning that into law is a much longer road. The new Congress is sworn in on January 3. Trump said this week he would block Democratic legislation, and a veto override needs two-thirds of both chambers. Democrats have around 54 Senate seats against the 67 an override takes, and House Democratic leader Hakeem Jeffries hasn't committed to backing the bill. So I'd put a federal pause close to zero for 2027. What did go up is the risk of slower building. Data centers were on 41 local ballots in 10 states on Tuesday, by Ballotpedia's count, and a Democratic Congress can lean on permits, power and water without ever passing a ban. Memory also has a problem of its own this week. Qualcomm said rising memory costs pushed phone prices up and hurt demand, and its handset chip revenue came in at $5.14bn against a $5.21bn estimate. That's high DRAM prices showing up as lost phone units, and it has nothing to do with Washington. The buyers going up fits a slower buildout: less capex, more free cash flow. Memory gets the other side of that trade, because 2027 estimates assume no slowdown at all. Nothing can pass before January 3, so the next real data point is hyperscaler capex guidance. Which comes first: a hyperscaler trimming its 2027 capex plan, or the memory names getting this 20% back?

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