AI hardware stocks fell sharply against the broader market. As of press time, Yangtze Optical Fibre and Cable Joint Stock Ltd (06869.HK) dropped 9.24% to HK$99.65; Kingboard Laminates Holdings Ltd (01888.HK) fell 8.95% to HK$33.98; Zhongji Innolight Co Ltd (03308.HK) declined 7.20% to HK$619; and CIG Shanghai Co Ltd (06166.HK) dropped 6.21% to HK$59.7.
On the news front, a latest JPMorgan report noted that Democrats have gained control of the House and Senate and won governor races in key data center states such as Texas, Georgia, New Mexico, and Nevada. At the same time, 42 of 45 local ballot measures restricting data centers have passed or are leaning toward passing. JPMorgan believes the probability of temporary pauses eventually turning into permanent bans is limited, but the pace of industry expansion has already been materially affected.
Huatai Securities pointed out that pre-election consensus expectations had not yet factored in regulatory variables, and in the near term the market may trade the risk of Capex downgrades for 2027/2028. The substantive impact will first appear as delays in park power supply, along with postponed equipment procurement, acceptance, and payment collection.
Taking into account demand independence and delivery certainty, the sector ranking is maintained as: consumer electronics > design > foundry > storage > equipment.
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