Top 5 AI Stocks to Buy After Midterm Elections: This Strategist Calls the Sell-Off a Massive Opportunity

The post-midterm election decline in artificial intelligence (AI) equities presents a buying opportunity, according to Shay Boloor, Chief Market Strategist of Futurum Equities. Boloor stated that the market is incorrectly treating regional data center development delays as a drop in overall AI compute demand.

Separating Regulation from Demand

Following the election results, which saw Democrats win seats in Texas, concerns arose regarding pauses on data center projects, Boloor noted. Texas accounts for about a quarter of planned data center capacity, according to the strategist.

However, Boloor argued that the market is overreacting to the potential for slower permitting and higher infrastructure costs.

“The fundamentals haven’t changed,” Boloor said, adding that “the market is kind of labeling the whole AI data center train as weakness. And that’s that kind of blanket… is creating opportunity.”

Boloor stated that a potential restriction on where infrastructure gets built does not change whether that infrastructure needs to get built at all.

Five AI Stocks for the Rebound

Boloor identified five specific companies he believes are positioned to withstand regional infrastructure challenges:

• Advanced Micro Devices Inc. (NASDAQ:AMD): Boloor stated that AMD “sells compute wherever the racks get built” and highlighted that management expects more than 80% total growth in 2027.

• Vertiv Holdings Co. (NYSE:VRT): Every megawatt of compute requires power distribution and cooling regardless of the state in which it is built, according to Boloor.

• Credo Technology Group Holding Ltd (NASDAQ:CRDO): Boloor noted that Credo’s business focuses on internal cluster connectivity, a demand that follows the servers wherever they are deployed.

• DigitalOcean Holdings Inc. (NYSE:DOCN): The strategist pointed out that DigitalOcean operates active, secured capacity outside of Texas, which becomes more valuable if new megawatts are hard to secure.

• Nebius Group NV (NASDAQ:NBIS): Boloor stated Nebius already controls gigawatts of power with a U.S. footprint stretching across multiple other states.

Capitalizing on the Sell-Off

Despite acknowledging that new data centers may take longer to permit and cost more to build, Boloor maintained his positive outlook on the sector. “I am buying the dip,” Boloor stated, noting that there will be clear winners and losers following the election.

How Have These Stocks Performed?

Stocks	1-Month	6-Months	YTD	1-Year
AMD	-22.89%	43.11%	128.23%	95.47%
VRT	-18.49%	-37.89%	26.87%	13.68%
CRDO	-37.57%	-24.19%	-5.14%	-16.88%
DOCN	-40.02%	-22.78%	74.61%	116.43%
NBIS	-41.72%	-19.78%	69.07%	28.03%

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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