Amazon and Microsoft Surge Following Midterm Elections and Projected Cloud Supply Constraints

Amazon advanced 6.84% after surging up to 8% earlier on Wednesday, combining with Microsoft to add $400 billion in market capitalization. Major technology stocks and hyperscalers rallied sharply as U.S. midterm election results, which saw Democrats flip the House and Senate, removed investor uncertainty. Although voters rejected AI data center expansions in 40 out of 41 local ballot measures, analysts noted that resulting zoning and construction constraints favor well-capitalized incumbents. Investors expect an emerging capacity crunch to provide Amazon Web Services and Microsoft Azure with pricing power to enhance margins.