Buy These AI Infrastructure Stocks Amid Midterm Election Risks, Bernstein Says

Investing.com -- Bernstein has identified top stocks in the AI infrastructure sector as political risks from upcoming midterm elections weigh on data center development. The firm’s analysis shows that approximately 244 gigawatts, or 55% of the data center pipeline, faces political risk following the 2026 midterms, as front-runners in gubernatorial races favoring restrictions on data center construction lead in states containing roughly 250 gigawatts of projects.

However, Bernstein notes that economic incentives may ultimately outweigh political opposition, as data center projects represent 8% of state GDP in affected regions. The broker maintains buy ratings on select stocks despite near-term selling pressure concerns.

1. Quanta Services (NYSE: PWR) - A machinery and electricals pick that Bernstein expects to benefit from the data center infrastructure buildout despite political headwinds.
   
   
2. Eaton Corporation (NYSE: ETN) - Bernstein sees this machinery and electricals name capturing demand from grid and power infrastructure projects.
   
   
3. Forgent Power Solutions (NYSE: FPS) - Offers machinery and electricals exposure to AI infrastructure.
   
   
4. Legence Corp. (NASDAQ: LGN) - Joins the machinery and electricals group on the buy list.
   
   
5. Equinix (NASDAQ: EQIX) - Political risks exist, but the economic stakes may force politicians to moderate opposition to data center development, Bernstein says of this infrastructure pick.
   
   
6. Digital Realty Trust (NYSE: DLR) - Another infrastructure name, set to benefit if officials soften their stances after the election.
   
   
7. Vertiv Holdings (NYSE: VRT) - Among the multi-industry picks, expected to navigate political uncertainty in the data center market.
   
   
8. nVent Electric (NYSE: NVT) - Provides multi-industry exposure to AI infrastructure.
   
   
9. Johnson Controls International (NYSE: JCI) - Developers may absorb greater infrastructure costs without material impact, Bernstein expects, making this multi-industry stock a buy.
   
   
10. Trane Technologies (NYSE: TT) - Rounds out the multi-industry names.
    
    
11. GE Vernova (NYSE: GEV) - Bernstein’s alternative energy and technology pick for AI infrastructure.
    
    
12. Siemens (XETRA: SIE) - The German industrial conglomerate, one of the European capital goods recommendations.
    
    
13. Siemens Energy (XETRA: ENR) - The energy technology company also makes the European capital goods buy list.
    
    
14. Schneider Electric (EPA: SU) - This French electrical equipment maker completes the European capital goods group.

Original Article

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