Nvidia and AMD Could Recover Despite New Restrictions on Texas Data Centers

I want to reassure investors that the reports that data centers are going to be banned are fake news, fueled by Chinese propaganda. Gina Hinojosa, the governor-elect of Texas, has explicitly said that all currently permitted data centers in Texas will be allowed to finish construction. This essentially covers all of 2027 and well into 2028. She said that she is going to pass laws that ensure that all “newly” permitted data centers going forward for delivery in 2028/2029 will pay taxes, commit to no increase in power prices for consumers, not impact water availability for people, and be constructed with union labor.

I believe Texas will remain a data center powerhouse, as will Georgia, North Carolina, Ohio, Pennsylvania, Virginia and other states with existing and incoming Democratic governors. It makes virtually no sense for hyperscaler stocks to rally while semiconductor and memory stocks sell off, so I am expecting a big reversal in leading chip stocks like AMD, NVDA, TXN, MU, TSMC, and memory stocks such as SNDK, STX and WDC.

Meanwhile, the Labor Department announced that 165,000 payroll jobs were created in October, which issubstantially better than economists’ consensus estimate of 70,000. The August and September payrolls were revised up by a cumulative 84,000. The employment rate declined to 4.1% in October, down from 4.2% in September. Average hourly earnings rose 0.4% by 14 cents to $38 per hour in October and have risen 3.1% in the past 12 months. Manufacturing jobs rose a healthy 19,000 in October and have increased 101,000 since December 2025. Based on transportation and warehousing creating 25,000 jobs in October, it appears that seasonal hiring for the upcoming holiday shopping season is underway. This was obviously a very positive payroll report, and Treasury yields rose in the wake of the October payroll report.

The Commerce Department announced that the U.S. trade deficit plunged by $105 billion in September as exports rose 1.9% to $321.5 billion and imports rose 1.2% to $426.6 billion. This means that the preliminary third-quarter GDP estimate of 3.4% will likely be revised higher.

Also expected to boost third-quarter GDP is the fact that productivity soared 3.6%, which was well above economists’ consensus expectation of a 2.7% increase. In fact, the third-quarter productivity gain was so massive that unit labor costs declined by 0.7%, which was well below economists’ consensus expectation of a 0.4% increase. This also bodes well for potential wage increases.

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Louis Navellier and his family own AMD, NVDA, MU, TSMC, SNDK, and STX. They do not own TXN.