4 November 2026
If you are covering the impact of the midterm election results on the tech industry, or AMD's latest financial results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
Midterms
"The Democratic wave we have seen across the midterm results will have a significant impact on the technology industry, and isn't just limited to AI safety regulation. The big change is the Democrat advances in Texas, where they have taken the governorship and as such will have a big say on the build out of data centres in the state. Texas has been a popular choice for data centres, so any limitations or additional regulations put in by the Democrats could hamper what has become a burgeoning industry.
"Meanwhile, with Democrats now controlling both the House of Representatives and the Senate, there is increased chance of both additional regulation of the tech companies and investigations into Donald Trump's finances, which could see the big tech companies inadvertently involved in. Clearly AI safety has moved up the agenda in recent months and there is a consensus that more needs to be done. The US will want to be seen to lead on this in its battle with China for AI supremacy, but Congress needs to be careful not to be too kneejerk with its actions and put too heavy a brake on growth and development.
"As investors, there is no reason to panic, however. The US wants to remain at the head of the pack when it comes to AI models and as such we would hope future regulation reflects that. That said, it is one that will need to be watched closely given the potential for a volatile relationship between Congress and the President."
AMD
"AMD delivered a really strong set of results in what has been a volatile couple of weeks for tech stocks, helping to put aside any fears that the AI trade may be about to fall. Revenues were up 45%, while profits went up by 75%, with data centres being the big driver of this. Indeed, the company is now guiding to 66% growth in the fourth quarter of this year, with revenues accelerating to 80% in 2027, all off the back of data centre demand.
"This is a wave that AMD will continue to ride even if the midterm election results paint a more challenged picture for data centre build out. The company can move supply from underperforming parts of the market - PCs, consoles etc. - into more profitable areas. This is giving the hyperscalers confidence in AMD as a second source of chips to Nvidia. The fact that AMD is executing its strategy well, taking market share and improving its supply will help to keep investors believing that AI demand is here to stay for a while longer yet, regardless of the political machinations in Washington and key states."
