US stocks to buy for the short term: The S&P 500 has gained about 8% year-to-date despite the Middle East conflict and rising concerns over inflation, which saw the biggest rise in about three years. The primary driver of this rally is the bullish sentiment around AI .
“Markets have begun pricing a material probability of a hike before year-end. Equities went to new highs anyway. The reason is $725 billion- the combined AI capital expenditure commitment from Google, Microsoft, Meta, and Amazon for 2026, up 77% from last year. A spending cycle of that scale overrides an inflation print,” Subho Moulik, Founder and CEO, Appreciate, pointed out.
“This week’s five names come from the physical layer of the AI buildout, and from the supply chain that the Beijing summit cannot actually fix,” Moulik said.
Stock picks for the short term
Subho Moulik says investors may consider buying these five stocks for the next 1-2 weeks:
MP Materials (MP)
Moulik pointed out that the 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, and owns approximately 15% of the company via $400 million of Series A convertible preferred and warrants.
Moulik added that Apple has a $500 million total commitment for rare earth magnets from the same facility, including a $200 million committed prepayment.
“The 10X facility in Northlake, Texas, targeting 10,000 metric tonnes of annual magnet output, broke ground this year. The price floor and the Apple prepayment guarantee the revenue base. The production record proves the mine can deliver,” said Moulik.
Freeport-McMoRan (FCX)
Moulik highlighted that FCX reported Q1 EPS of $0.57, beating consensus by 21%, on revenue of $6.23 billion, with an average realised copper price of $5.78 per pound.
The structural case is separate. Moulik underscored that every data centre, every power transformer, every EV in the AI buildout runs on copper.
“$725 billion in AI capex is a copper demand signal that does not expire with a guidance cut. Goldman Sachs forecasts $15,000 per tonne by 2035. The Grasberg ramp is a timing issue. The demand trajectory is not,” said Moulik.
Arista Networks (ANET)
Moulik highlighted that Arista raised its 2026 AI revenue target to $3.5 billion, more than doubling its 2025 AI revenue, on Q1 results that grew 35% to $2.71 billion.
Full-year revenue growth guidance was raised to 27.7%. Every Nvidia GPU cluster requires high-speed networking to operate at scale.
“Arista’s Universal AI Spine is the switching backbone of those clusters. Its new XPO liquid-cooled optics reduce networking racks by up to 75% and floor space by 44%, directly addressing the density and power constraints inside hyperscaler data centres,” said Moulik.
“Q2 guidance of $2.8 billion came in above consensus. AI networking is not a product category. It is a structural architectural requirement for every cluster that gets built,” Moulik said.
Eaton Corporation (ETN)
According to Moulik, data centre orders at Eaton grew 240% year-on-year in Q1 2026, with data centre revenue up 50%. Q1 revenue grew 17% to a record $7.5 billion.
Eaton makes the electrical distribution and power management systems between the utility grid and the GPU cluster. Its current data centre construction backlog stands at 228 gigawatts, approximately 12 years of demand at current build rates.
“Full-year organic growth guidance was raised to 10%, with adjusted EPS guided to $13.05-$13.50. The Beam Rubin DSX platform, developed with Nvidia, handles 800-volt DC architecture for next-generation data centres. The 228 GW backlog is not a projection. It is a contracted demand,” said Moulik.
Constellation Energy (CEG)
Moulik said Constellation had approximately 780 megawatts of contracted data centre capacity with CyrusOne across its Freestone and Thad Hill sites as of Q1 2026, including a 380 MW deal at Freestone signed in February.
The company also submitted 5,000 megawatts of new capacity to PJM for grid interconnection, Moulik added.
Q1 revenue grew 64% to $11.1 billion, with adjusted EPS of $2.74, beating consensus. The company has affirmed a 20% annual EPS growth target through 2029.
“The Three Mile Island restart carries a $1 billion DOE direct loan, with Constellation targeting restart in the second half of 2027. Data centres require 24-hour baseload power that is carbon-free,” said Moulik.
“Nuclear is the only source meeting both constraints at the same time. Every hyperscaler with a net-zero commitment is working through the same arithmetic,” Moulik added.
Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
