Dan Ives Says Wall Street Is Underestimating 2 Major Tech Stocks

What happened

Yorkville Ives analyst Dan Ives says Amazon and Microsoft could benefit if U.S. data center construction slows after Democrats’ midterm election victories raised concerns about tighter AI infrastructure restrictions. He estimates about 10% of 800 to 1,000 planned centers could be canceled, or as many as 30% in a more severe scenario over 18 months.

Confirmed

Global impact / market context

If fewer centers are built, existing computing capacity could become scarcer, potentially giving established operators such as Amazon and Microsoft more ability to charge for it. Lower construction could also reduce their need to finance new facilities, though the article still expects substantial AI spending overall.

Analyst inference

The article presents a counterintuitive view: political concerns about AI infrastructure restrictions could slow construction but benefit companies that already operate large computing networks. Ives nevertheless estimates AI-related capital spending could reach $3 trillion to $4 trillion over several years, suggesting a slowdown would not necessarily end the investment cycle.

Analyst inference

What to watch

1. Whether the estimated cancellations occur: Ives puts the potential share at about 10% of 800 to 1,000 planned U.S. data centers, rising to 30% in a severe case. Analyst inference
2. Whether tighter AI infrastructure restrictions follow the election shift; the article identifies these concerns as a possible reason planned data center projects could be canceled. Analyst inference
3. Whether Amazon and Microsoft can benefit from scarcer existing computing capacity through stronger pricing and lower financing needs, as Ives argues, while AI spending remains substantial. Analyst inference

Evidence

• gurufocus.com