Nvidia's Stock Price Rises, Democratic Victory Does Not Affect AI Chip Demand

On November 4, Nvidia's stock price rose on Wednesday, despite the possibility of stricter restrictions on data center construction following the Democratic victory in the elections. Positive performances from major companies in the chip industry indicate that concerns about delays in data center construction have not immediately impacted Nvidia and other hardware firms. Customers are still scrambling to stockpile artificial intelligence hardware, although it remains uncertain whether there will be suitable locations to install these devices in the future. The defeat of Republican governors in Texas and Ohio in the elections means that the construction of AI infrastructure will face stricter scrutiny. Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, pointed out that increased congressional oversight may not necessarily hinder the AI investment cycle, as comprehensive federal-level restrictions will face legislative and presidential power limitations, while state and local regulations will still have a greater impact on the timing and site selection for data center construction. If the Democrats push for stringent measures to limit the construction of AI data centers, Nvidia may face greater challenges in the future. However, the market is currently more focused on signs that chip demand remains strong after the stock's recent weak performance.

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