JPMorgan says a 2026 blue wave could slam AI data center stocks that now make up 45% of the S&P 500

What happened: JPMorgan strategist Dubravko Lakos-Bujas wrote a note on midterm election scenarios, saying Republican control of Congress would be the most supportive federal backdrop for the AI and infrastructure buildout. Why it matters: Lakos-Bujas sees Republican wins as most supportive for AI policy, and that scenario looks unlikely now. Data centers have become a partisan issue, with the NRSC calling it a sleeper issue for the cycle.

JPMorgan strategist Dubravko Lakos-Bujas wrote a note on midterm election scenarios, saying Republican control of Congress would be the most supportive federal backdrop for the AI and infrastructure buildout.

Lakos-Bujas sees Republican wins as most supportive for AI policy, and that scenario looks unlikely now. Data centers have become a partisan issue, with the NRSC calling it a sleeper issue for the cycle.