US Investors May Consider These 5 Stocks for Short-Term Gains
US Stocks to Buy for the Short Term Amidst AI Buildout
Despite the Middle East conflict and rising concerns over inflation, the S&P 500 has gained about 8% year-to-date. The primary driver of this rally is the bullish sentiment around AI, with a combined AI capital expenditure commitment of $725 billion from Google, Microsoft, Meta, and Amazon for 2026, a 77% increase from last year.
This spending cycle of a scale overrides an inflation print, as pointed out by Subho Moulik, Founder and CEO of Appreciate. The five names that follow are from the physical layer of the AI buildout and from the supply chain that the Beijing summit cannot fix.
Short-term Stock Picks
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
For the next 1-2 weeks, investors may consider buying the following five stocks:
| Stock | Reason for Investment |
|---|---|
| MP Materials (MP) | US Department of Defense holds a 10-year offtake commitment for 100% of MP Materials' new magnet facility output, at a guaranteed floor of $110 per kilogram of NdPr. Apple has a $500 million total commitment for rare earth magnets from the same facility. |
| Freeport-McMoRan (FCX) | Structural case is separate, with every data centre, power transformer, and EV in the AI buildout running on copper. Goldman Sachs forecasts $15,000 per tonne by 2035. |
| Arista Networks (ANET) | Raised its 2026 AI revenue target to $3.5 billion, more than doubling its 2025 AI revenue. Every Nvidia GPU cluster requires high-speed networking to operate at scale. |
| Eaton Corporation (ETN) | Data centre orders at Eaton grew 240% year-on-year in Q1 2026, with data centre revenue up 50%. Eaton makes the electrical distribution and power management systems between the utility grid and the GPU cluster. |
| Constellation Energy (CEG) | Had approximately 780 megawatts of contracted data centre capacity with CyrusOne across its Freestone and Thad Hill sites as of Q1 2026. The company has affirmed a 20% annual EPS growth target through 2029. |
Individual Stock Analysis
- MP Materials (MP): MP Materials has a strong offtake commitment from the US Department of Defense and a significant commitment from Apple. The company's new magnet facility in Northlake, Texas, is expected to produce 10,000 metric tonnes of annual magnet output.
- Freeport-McMoRan (FCX): FCX reported a strong Q1 EPS and revenue, beating consensus estimates. The structural case for copper demand is separate from the guidance cut, with every data centre, power transformer, and EV in the AI buildout running on copper.
- Arista Networks (ANET): Arista raised its 2026 AI revenue target to $3.5 billion, more than doubling its 2025 AI revenue. The company's Universal AI Spine is the switching backbone of Nvidia GPU clusters.
- Eaton Corporation (ETN): Eaton's data centre orders grew 240% year-on-year in Q1 2026, with data centre revenue up 50%. The company has a significant backlog of contracted demand, with 228 gigawatts of data centre capacity.
- Constellation Energy (CEG): Constellation has approximately 780 megawatts of contracted data centre capacity with CyrusOne and has submitted 5,000 megawatts of new capacity to PJM for grid interconnection. The company has a 20% annual EPS growth target through 2029.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors may consider buying these five stocks for short-term gains.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
