Dan Ives Says Wall Street Is Underestimating 2 Major Tech Stocks Moz Farooque ACCA Tue, November 10, 2026 at 12:25 PM EST 2 min read AMZN +0.29% MSFT -3.28% GOOGM -0.46% META -0.29% ORCL -3.32% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) could emerge as unexpected winners from a slowdown in U.S. data center construction, according to Yorkville Ives analyst Dan Ives. His counterintuitive argument comes after Democrats' midterm election victories raised concerns about tighter restrictions on AI infrastructure, potentially making existing computing capacity more valuable while reducing future spending pressures.
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Ives estimates that roughly 10% of the 800 to 1,000 data centers planned across the United States could be canceled following the political shift.
Under a more severe scenario, cancellations could reach 30% over the next 18 months.
Rather than undermining the AI boom, Ives argues that reduced construction would benefit established hyperscalers with operational infrastructure, including Amazon, Microsoft, Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and potentially Oracle (NYSE:ORCL).
The reasoning is straightforward: fewer new data centers could make existing computing capacity scarcer, supporting pricing power while reducing pressure to finance additional infrastructure.
Ives described the development as hugely bullish for major hyperscalers.
Even under the more pessimistic scenario, he estimates AI-related capital expenditures could total $3 trillion to $4 trillion over the next several years, with Big Tech spending exceeding $1 trillion in 2027.
However, the spending growth peak could arrive in 2027 rather than 2028 or 2029.
The implications are particularly significant for Amazon, which expects approximately $220 billion in capital expenditures in 2026, and Microsoft, whose Azure revenue surged 48% in its latest quarter.
Investors should monitor data center permitting decisions, particularly in Texas, alongside upcoming cloud earnings and capital expenditure guidance.
Microsoft's Azure growth and Amazon Web Services' revenue expansion will help determine whether AI demand remains strong despite construction restrictions.
Free cash flow and infrastructure utilization are equally important.
Slower investment could improve returns on existing assets, but widespread project cancellations could also constrain future cloud revenue growth.
The strongest outcome for shareholders would be sustained AI demand combined with slower capital spending growth, improving cash generation without sacrificing market share.
