Americans should expect a few more years of divided government. Vice President Kamala Harris has an average lead of 2.8% over former President Donald Trump in 256 polls of the presidential race. Decision Desk HQ’s models show a 72% chance of Republicans regaining a majority in the Senate and a 53% chance of retaining a majority in the House of Representatives.
Of course, polls don’t decide elections; voters do that. However, it is not too early for investors to evaluate what they could do based on November’s results. What if the polls turn out to be right? Here are three stocks that could be big winners if Harris wins but the Republican Party controls Congress.
1. Broadcom
Democrats and Republicans disagree on many issues. However, the need for the US to lead the world in artificial intelligence (AI) is one area where they are aligned. Members of both major political parties are working together on the House Task Force on Artificial Intelligence to “explore how Congress can ensure America continues to lead the world in AI innovation while considering guardrails that could be appropriate to protect the nation from current and emerging threats. “
Broadcom (NASDAQ:AVGO) could benefit from bipartisan support from U.S. AI leadership. The California-based company is a top supplier of semiconductors and networking infrastructure used in AI data centers. Seven of the world’s eight largest AI clusters rely on Broadcom’s Ethernet networking technology.
With Harris as president, Broadcom will not be negatively affected by the high tariffs Trump has proposed. On the other hand, with the Republican Party in control of Congress, Harris was unlikely to implement her proposed corporate tax increase. It’s a win-win proposition for Broadcom.
Regardless of who is the next president or which party has a majority in Congress, Broadcom’s long-term prospects look good. As AI becomes more powerful, organizations will need to upgrade their servers, networks, and data storage devices. This should drive demand for Broadcom’s products in the coming years.
2. Brookfield infrastructure
Many Democrats and Republicans believe in improving the country’s infrastructure and agree on the importance of American dominance in AI. Politicians of all stripes want the economy to be strong. History shows that since World War II, the American economy has performed better under Democratic presidents than under Republican presidents. But the stock market has performed best when those Democratic presidents had at least one House of Congress controlled by the Republican Party.
A divided government with Harris as president could be an ideal scenario for this Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC). The company operates pipelines, terminals, railways and other infrastructure assets that benefit from a booming economy. It also owns data centers and semiconductor foundries, both of which are growth markets, thanks in part to the tailwinds of AI.
Income investors will especially like Brookfield Infrastructure’s distributions. The limited partnership units trading under the BIP ticker offer a forward distribution yield of 4.5%. The company shares trading under the BIPC ticker offer a forward distribution yield of 3.8%. These benefits have increased at a compound annual growth rate of 9% since 2009.
What if the economy is not doing well now that Harris is in the White House and the Republicans control the House and/or the Senate? Brookfield Infrastructure’s business is remarkably resilient; 90% of operational resources (FFO) are contracted or regulated.
3.Microsoft
Harris and Republicans could also find common ground on cybersecurity. The vice president has been a proponent of protecting IT infrastructure from threats in the past. The GOP’s 2024 platform included language about cybersecurity. The positions of both parties are consistent with their AI priorities.
Few companies are so at the forefront of AI and cybersecurity Microsoft (NASDAQ: MSFT). The company is the second largest cloud service provider and offers extensive AI capabilities. It has integrated AI into all its productivity software applications. Microsoft also markets cybersecurity products and services.
I think Microsoft would continue its winning methods if the Democrats or Republicans are in power. The opportunities with AI are so great that the company can be successful even if the legislature puts a few roadblocks in its path.
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Keith Speights holds positions at Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners and Microsoft. The Motley Fool holds positions in and recommends Microsoft. The Motley Fool recommends Broadcom and Brookfield Infrastructure Partners and recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
3 Stocks That Could Be Big Winners If Kamala Harris Wins, But the GOP Controls Congress was originally published by The Motley Fool
