Americans may be facing continued political division in the coming years, as Vice President Kamala Harris currently holds a 2.8% lead over former President Donald Trump in 256 presidential race polls. Decision Desk HQ predicts a 72% chance of Republicans regaining the Senate majority and a 53% chance of holding onto the House majority. While polls are not definitive, investors can begin assessing potential outcomes post-November. In case these forecasts materialize, three stocks stand out as potential winners if Harris becomes President while the GOP controls Congress.
Vice President Kamala Harris. Image source: Official White House photo by Cameron Smith.
Investment Option 1: Discovering Broadcom’s Potential
One area where bipartisan agreement emerges is in the importance of the U.S. leading in artificial intelligence (AI). Political parties unite in the House Task Force on Artificial Intelligence, focusing on maintaining America’s AI innovation edge while implementing necessary safeguards. Broadcom (NASDAQ: AVGO) could capitalize on broad support for U.S. AI leadership. Based in California, Broadcom supplies semiconductors and network infrastructure crucial for AI data centers. A notable seven out of the world’s eight largest AI clusters rely on Broadcom’s Ethernet networking solutions.
With Harris as President, Broadcom could avoid adverse effects of proposed Trump tariffs. Meanwhile, with GOP control in Congress, Harris may struggle to pass corporate tax hikes, benefiting Broadcom. Furthermore, irrespective of the presidency or congressional makeup, Broadcom stands to benefit from increased demand for its products as AI advancements drive server, network, and data-storage upgrades.
Investment Option 2: Brookfield Infrastructure in Focus
Improving infrastructure aligns with bipartisan goals, along with the desire for U.S. AI leadership. Historical data suggests that the economy performs better under Democratic presidents with GOP-controlled Congress. Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) could thrive in a divided government, owning pipelines, terminals, rail assets, and infrastructure benefiting from economic expansion. The company’s involvement in data centers and semiconductor manufacturing, buoyed by AI trends, enhances its growth potential.
Investors seeking income may find Brookfield Infrastructure attractive, with BIP and BIPC offering forward-distribution yields of 4.5% and 3.8%, respectively. These distributions have sustained a 9% compound annual growth rate since 2009. Even if economic conditions sour under Harris and a GOP-led Congress, Brookfield Infrastructure’s business resilience, with 90% of funds derived from contracted or regulated operations, offers stability.
Investment Option 3: Microsoft’s Strategic Position
Harris and Republicans may find common ground on cybersecurity, an area both prioritize alongside AI initiatives. Microsoft (NASDAQ: MSFT) stands as a prominent player in AI and cybersecurity realms. As the second-largest cloud service provider, Microsoft integrates AI extensively across its software suite and offers robust cybersecurity solutions.
With pervasive AI opportunities, Microsoft is poised for success regardless of the political landscape. The company’s strong foothold in AI may counteract any legislative obstacles, ensuring continued success.
Should you invest $1,000 in Broadcom right now?
Before considering Broadcom, weigh these factors:
The Motley Fool Stock Advisor team highlights the 10 best stocks for future gains, with Broadcom not among them. Back in 2005, a $1,000 investment in Nvidia turned into $845,679 post recommendation.
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Keith Speights holds positions in Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, and Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool endorses Broadcom and Brookfield Infrastructure Partners and suggests long January 2026 $395 calls on Microsoft while proposing short January 2026 $405 calls on Microsoft. The Motley Fool adheres to a disclosure policy.
