The 2026 midterm elections ended in a major political shake-up, with Democrats winning control of both the House of Representatives and the Senate. While the results do not necessarily change the long-term outlook for artificial intelligence (AI), they could introduce new risks for some of the market's most popular AI stocks. Companies such as Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have benefited enormously from the AI revolution so far. However, potential changes to federal spending priorities and greater scrutiny of AI infrastructure could complicate their growth trajectories going forward. For investors looking to capitalize on the AI theme without taking on quite as much uncertainty, I think Microsoft (NASDAQ: MSFT) offers an interesting alternative.
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