OpenAI, Arm and Qualcomm executives react to post-midterm AI sell-off

Signage at the Nasdaq MarketSite in New York, US, on Thursday, Nov. 5, 2026.

Michael Nagle | Bloomberg | Getty Images

As a post-midterm rally Wednesday turned into a steep sell-off Thursday, tech executives sought to look through the notion that potential data center constraints could be catastrophic for their businesses.

In response to a Democratic sweep of Congress as well as a sizeable number of state governorships and legislatures in the midterm election Tuesday night, stocks initially rallied Wednesday, posting their best day in more than 18 months as President Trump accepted the blowout results with little fanfare.

The tide quickly turned Thursday, however, with stocks selling off sharply as investors feared a potential slowdown in the data center build-out after wins by candidates in favor of data center regulation in states like Texas and the possibility that the artificial intelligence trade may be past its peak. Tech led the sell-off, with the "Magnificent Seven" losing over $1 trillion in aggregate market cap.

Stocks recovered some of their losses Friday.

Here's how tech executives reacted to the midterms and sell-off threat:

Arm CEO Rene Haas

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Haas characterized the postelection fear as "very, very short term thinking" and not likely to be a major threat to Arm's business in the long term, but said the U.S. must keep investing in the data center build-out before the rest of the world catches up.

"If the U.S. hesitates in any way, shape, or form in terms of data center build-out, the rest of the world is ready and willing. There is just huge demand for this capacity," Haas told CNBC's "Squawk on the Street" Thursday.

OpenAI CFO Sarah Friar

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"When I think about the midterms, I need to keep thinking about how do we keep investing to meet that customer demand. It starts early with having built relationships with all of the hyperscalers, and it will continue to mean that we raise capital," Friar said.

Qualcomm CEO Cristiano Amon

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