5 Best Stocks to Buy After Democrats’ Election Sweep, According to CIBC Maham Fatima Thu, November 12, 2026 at 4:10 PM EST 9 min read V -1.10% META -0.85% MSFT +0.17% GOOG +2.12% AMZN +0.46% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
CIBC Capital Markets recommended a list of top stock picks after the Democratic sweep of Congress, according to CNBC, citing a potentially tougher regulatory environment for corporate America. In a report published the day after the midterm vote, the Canadian bank said its Democratic basket was designed to hold up in a more defensive market, driven by a less business-friendly environment. It had built two baskets before the election: one for a Democratic-controlled Congress and one for a Republican-controlled Congress.
The Democratic list holds 36 stocks. The bank leaned toward major technology platforms and multinational companies over domestic ones, and it tilted toward lower-volatility names wherever it could, expecting investors to grow more cautious. The basket also stretches across consumer staples, real estate, health care, financials and utilities, so it is not only a technology bet. Beyond the largest technology companies, it also picked businesses in cybersecurity, consulting, payments, health insurance, waste services and utilities.
Christopher Harvey, CIBC's head of equity and portfolio strategy, wrote that in a more regulation-driven scenario, the bank would trim its exposure to the suppliers that build out AI infrastructure and lean toward the large cloud platforms and software companies.
The Republican basket is the mirror image. Its 45 names favor AI exposure, based on expectations of limited regulation and less resistance to data-center construction under a Republican-led Senate. Together, the two lists work as opposing bets on how much Washington will push back on corporate America. Readers following the group can find more names in our list of tech stocks investors are talking about.
Harvey also cautioned against writing off the data center boom. Campaign promises should be respected, he wrote, but data centers bring jobs, economic growth and a larger tax base that most politicians want, and few of them want the blame for losing the AI race to China. CNBC separately reported that some economists see political pushback as a way to let some air out of an AI bubble without popping it. For another set of names, see our ranking of the most promising technology stocks to buy right now.
Not every group rallied on the news. Defense stocks slid more than 2% on Wednesday on fears that Democrats will curb spending, although Wolfe Research analyst Myles Walton told clients the knee-jerk reaction could fade quickly, pointing to past cases in which defense contractors recovered from election-driven sell-offs. Overall, the Dow had soared 1,500 points that day, its best session since April 2025.
We shared the expanded list of 10 Best Stocks to Buy After Democrats' Election Sweep, According to CIBC here. You can find the top 5 stocks below.
To compile our list, we reviewed the stocks identified in CNBC's coverage of CIBC Capital Markets' 36-stock Democratic basket. CIBC has favored large technology platforms, multinationals, and lower-volatility names amid expectations of regulatory scrutiny. From these, we selected the 10 with the most hedge fund holders in Insider Monkey's Q2 2026 database of hedge funds, and counted the list down from there.
Note: All data was sourced on November 11, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey's quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).
Number of Hedge Fund Holders: 194
Market Cap: $780.73 billion
Visa is growing faster than a company of its size normally can. Fiscal 2026 net revenue rose 15% to $45.9 billion, which Visa described as its strongest growth in more than 15 years once the pandemic rebound and acquisitions are set aside. Net revenue in the fiscal fourth quarter rose 13% to $12.1 billion, and payments volume, cross-border volume and processed transactions all stayed strong.
Spending across borders is a big part of it. Cross-border volume, excluding transactions within Europe, grew 14% in the quarter, a key driver of its international transaction revenue. Other revenue grew even faster, up 40%, and earnings per share on a GAAP basis rose faster than revenue.
The board backed the numbers with cash. It raised the quarterly dividend 16% to $0.780 a share, and the company returned $25.6 billion to shareholders over the year. Visa also says it moves with whatever changes commerce, and it has been rolling out tools for supplier-spend analytics and virtual-card fraud prevention aimed at business payments. Whether larger client rebates are worth the price is a question we explored for Visa.
Number of Hedge Fund Holders: 254
Market Cap: $1.66 trillion
Meta's advertising business kept growing quickly while the company spends on artificial intelligence. Third-quarter revenue rose 26% to $64.6 billion, driven by a 14% jump in the average price of an ad and a 10% increase in ads delivered.
Meta guided fourth-quarter revenue to $73 billion to $76 billion, which would extend the run. Capital expenditures were $34.91 billion in the quarter. Cash flow from operations was $32.79 billion in the third quarter, and the company ended it with $82.45 billion in cash and marketable securities. Revenue in the United States and Canada grew especially fast, and the company said it expects to spend heavily on data centers to keep up with demand for its AI products. It also expects losses at Reality Labs, its virtual and augmented reality segment, to decline compared with 2025.
The spending has a goal. Founder Mark Zuckerberg said the quarter delivered major milestones toward "personal superintelligence for everyone," including the launch of Muse and Muse Wonder, the company's first frontier model. On the messaging side, our look at WhatsApp as a business beyond advertising goes deeper.
Number of Hedge Fund Holders: 273
Market Cap: $3.97 trillion
Microsoft says cloud demand still exceeds its available supply. Azure revenue grew 48% in the fiscal first quarter, ahead of the company's own expectations, even though delays at outside data-center providers held it back. Microsoft Cloud revenue reached $63.9 billion. Chief Financial Officer Amy Hood said results beat expectations on revenue, operating income and earnings per share.
The best evidence is the order book. Commercial remaining performance obligation, the value of signed contracts not yet recognized as revenue, rose 73% to $677 billion. Management guided Azure growth of 49% to 50% in constant currency for the fiscal second quarter.
Other parts of the business are helping. Stronger GitHub Copilot adoption lifted the commercial Microsoft 365 cloud business, and revenue at Foundry, the service for building AI applications, more than tripled from a year earlier as the company found more capacity in its existing servers and chips. Operating margin increased slightly to 50%, and cash flow from operations rose 29% to $58 billion. You might also be interested in reading our piece on whether security bundles can lift Microsoft's profit per customer.
Number of Hedge Fund Holders: 275
Market Cap: $3.54 trillion
Google Cloud was the standout of Alphabet's third quarter. Consolidated revenue was $127.6 billion, up 25%. Cloud revenue more than doubled, up 103% to $30.7 billion, and the segment's operating margin climbed to 36.2%, so the growth is profitable as well as fast. Operating income there was $11.1 billion, more than triple a year earlier.
Behind it sits a backlog of $561 billion in signed cloud contracts, with just over half expected to turn into revenue within 24 months. Part of the strength came from sales of Google's custom TPU chips, which customers can buy as complete systems, and management expects those sales to keep scaling in the fourth quarter before a meaningful ramp in 2027.
The rest of the company is healthy. Chief Executive Sundar Pichai said Alphabet has reached a half-trillion-dollar annual run rate, and the Gemini app now has one billion users. Pichai said the company's full-stack approach to AI is driving momentum across the business, and Google Services revenue rose 11%. Our analysis of whether Alphabet's valuation reflects Waymo's potential takes up one more piece of that story.
Number of Hedge Fund Holders: 369
Market Cap: $2.93 trillion
Amazon Web Services is speeding up at a size where most businesses slow down. AWS sales grew 39.3% to $46.0 billion in the third quarter, its fastest growth in nearly five years and its sixth straight quarter of faster growth.
Chief Executive Andy Jassy backed it with a forecast of AWS growth above 40% in both 2027 and 2028. The support is a $578 billion backlog of signed commitments that is growing at triple-digit rates and spread across many customers, according to Jassy. New AWS agreements in the quarter included Meta, OpenAI, NVIDIA and Salesforce, and tens of thousands of customers now use its AgentCore service to build AI agents. Amazon also made its custom Trainium AI chips easier to adopt by letting developers run existing PyTorch code on them without rewriting it.
The rest of the company is getting more profitable too. Operating margin reached 13.9%, the highest in Amazon's history, with Jassy saying broader selection and faster delivery are winning more retail market share at improving margins. The spending behind all this is the subject of our look at whether Amazon's cash engines can fund its robotaxi bet.
While we acknowledge the risk and potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Find the expanded list here: 10 Best Stocks to Buy After Democrats' Election Sweep, According to CIBC.
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