FOMO Market: The Five Most Worth Buying U.S. Stocks Before the Midterm Elections

Following the recent wave of AI anxiety, fear of missing out (FOMO)—or greed— remains one of the strongest emotional drivers in stock trading. Investors experienced this during the internet bubble, saw tech darlings soar during the pandemic, and are now witnessing another extraordinary rally in AI stocks. With the November 2026 midterm elections approaching, investors face another crucial question: is the AI rally losing steam, or just getting started?

The US GDP grew by 3.4% in the third quarter, surpassing expectations, and strong consumer spending suggests the AI boom is far from over. Key factors heading into the upcoming midterms include a weak job market in September, persistently high inflation, and tighter financial conditions. According to J.P. Morgan Asset Management, history shows that the stock market frequently rallies after midterm elections, with an average gain of nearly 15%.

Semiconductors remain at the core of the AI revolution, as demand for infrastructure, data, and high-bandwidth memory is driven by leading players such as Micron Technology and NVIDIA.

The opportunities brought by AI are not limited to large tech firms but can extend into the realms of innovation and diversified investing. As panic buying turns into FOMO, the following five stocks, which are rated "Strong Buy" by quantitative models, may help investors maximize returns.

2026 Midterms: History Suggests the Best Is Yet to Come

The recent pullback in tech and semiconductor stocks perfectly illustrates just how quickly investor sentiment can shift. One day, the market is cheering record-breaking capital expenditures and the acceleration of AI adoption; the next, investors start to question valuations, profitability, and whether these companies can maintain such returns.

But more importantly, it is essential to stick to fundamentals rather than chase headlines or follow pure sentiment. The market’s enthusiasm for technology has created massive wealth but also notable volatility. Still, history tells a compelling story.

The S&P 500 Has Frequently Found Support in October and November During Midterm Years

Election uncertainty often dominates headlines, making investors question whether to remain invested or shift to cash. According to Citadel Securities, the period ahead of the midterms often presents a weak window, followed by bullish momentum and a more constructive setup from mid-October through November.

According to J.P. Morgan Asset Management, since 1950, the S&P 500 has posted positive returns in the twelve months following midterm elections, averaging gains of 15.1%. These results let investors re-evaluate expectations for taxes, regulation, monetary policy, and economic growth. However, 2026 has not followed a typical midterm playbook.

BlackRock reports: "The average annual US equity return is weakest during midterm election years, but 2026 is the exception: as of August, US stocks are up 13%, the sixth-best start for a midterm year since 1926." This critical point suggests that what the market craves may not be a particular election outcome, but more certainty, supported earnings, and reasons to remain optimistic.

Don’t Bet Against the Fed or the AI Investment Cycle

The Federal Reserve remains focused on controlling inflation and has significant influence over valuations—especially growth stock valuations. Higher interest rates reduce corporate cash flows, raise financing costs, and dampen investors’ willingness to pay a premium for AI-related investments. We’ve already seen how, despite strong fundamentals, rising US Treasury yields can quickly suppress semiconductor and software stocks.

However, the current environment presents an interesting opportunity: the demand for AI infrastructure is driven by strategic investments that extend beyond a single quarter or rate hike decision.

Seeking Alpha’s quantitative ratings and factor scoring system can provide powerful clues when the market shifts from irrational exuberance to nervous chaos. The five “Strong Buy” quant picks in this article go far beyond just AI and semiconductor manufacturers—they represent diversified opportunities across sectors, from AI and traditional energy to power generation and healthcare services. Stocks with a blend of value, growth, profitability, upward earnings revisions, and momentum are best equipped to weather a correction. Given their widely varying risk profiles, I believe they all have room to perform both now and in the post-election environment.

Top Semiconductor Stocks

Thanks to strong valuations, profitability, and exceptional momentum, two major chip companies—Micron Technology (MU.US) and NVIDIA (NVDA.US)—offer favorable long-term investment opportunities that benefit a wide range of industries.

1. Micron Technology

- Market Cap: $1.06 trillion

- Quant Rating: Strong Buy

- Quant Sector Rank (as of October 30, 2026): 1st of 544

- Quant Industry Rank (as of October 30, 2026): 1st of 72

As one of the largest names in technology, Micron stands out as a global leader in memory and storage solutions, converting tailwinds into accelerating revenue, excellent profitability, and positive earnings revisions. It is a current member of SA’s flagship Alpha Picks portfolio, where since being added on October 15, 2025, it has contributed nearly 400% returns to the portfolio.

Micron’s position in advanced storage makes it a company worth assessing as the AI infrastructure cycle persists. As storage demand rises, Micron’s DRAM and NAND products serve a broad spectrum from computing devices to industrial applications. Its continuing technology leadership and pace of storage innovation allow it to shape AI capacity, deliver differentiated storage products, and benefit from fierce competition.

Micron’s earnings have consistently exceeded expectations, most recently reporting EPS of $33.42, $1.60 above estimates, and revenue of $54.23 billion, a YoY increase of nearly 380%. President and COO Manish Bhatia expressed optimism for Q4 2026:

“One of the sources of our confidence is that the demand backdrop for 2027 is even stronger than we previously anticipated. Of course, as we’re now engaging with customers on more SCA (Strategic Customer Agreement) conversations, including extended terms already agreed upon, this gives us greater confidence for the long term. Combined, we now have a very strong outlook through 2028.”

This is all happening amid intensifying competition and the significant capital expenditure required to maintain technological leadership. Strong industry demand doesn’t eliminate the possibility of future oversupply. However, Micron’s tiered positioning and evolving architecture are setting the stage for the future. If storage demand continues to outperform and earnings forecasts get revised upward, investors may turn their attention from AI processor makers toward companies supplying key components. Despite enormous quarterly momentum, Micron still trades at a considerable discount to its sector peers—a forward non-GAAP PEG ratio of 0.08x versus 1.19x for the sector.

2. NVIDIA

- Market Cap: $5.16 trillion

- Quant Rating: Strong Buy

- Quant Sector Rank (as of October 30, 2026): 5th of 544

- Quant Industry Rank (as of October 30, 2026): 2nd of 72

Currently trailing only Micron, NVIDIA ranks second in its industry by quant rating and is arguably unmatched in its ties to the AI revolution. After a valuation reset, the quant rating was recently upgraded from “Hold” to “Strong Buy,” with its forward 12-month P/E now below 20x.

The company's GPUs, accelerated computing platforms, and supporting software ecosystem are the backbone of the modern AI infrastructure movement. As hyperscale cloud providers and enterprises race to expand their capabilities, NVIDIA remains the primary supplier of the technology needed to train and run complex AI models.

Its competitive positioning includes the CUDA software ecosystem (which helps optimize applications), network tech, integrated compute systems, and a constantly expanding suite of enterprise-grade AI solutions. Along with Q2 2026 EPS of $2.22 (beating by $0.13) and $96.22 billion in revenue (up nearly 106% YoY), the company also delivered nearly $26 billion in record shareholder returns.

While NVIDIA dominates headlines and index concentration, investors must still distinguish between superior business growth and the valuations they're willing to pay. Competition from other semiconductor companies, custom AI accelerators developed by hyperscalers, export controls, and the sustainability of AI capital expenditure are all meaningful risks. There are smaller tech names within the semiconductor industry with further upside potential, many of which have been included in the PRO Quant Portfolio—a weekly rebalanced list of 30 “Strong Buy” quant picks spanning geographies and market caps.

Diversification can be a lifesaver; as investors have seen, even the most popular AI benchmarks can experience significant volatility even while posting extraordinary earnings growth. Next are several compelling quant names contributing to the AI revolution.

Top Energy and Industrial Stocks: Powering the AI Revolution and the Global Economy

Electricity access is critical for developers and technology firms, especially since AI data centers require vast, reliable power to run advanced processors, storage systems, cooling infrastructure, and network equipment. This creates opportunities in both traditional and alternative energy markets—the reason the next two stocks make the “Strong Buy” quant list.

Bloom Energy (BE.US) is more directly tied to data center power demand, while Marathon Petroleum (MPC.US) is linked to fuel demand and geopolitical shifts. Both are worth consideration, albeit for different reasons.

3. Marathon Petroleum (MPC)

- Market Cap: $121.46 billion

- Quant Rating: Strong Buy

- Quant Sector Rank (as of October 30, 2026): 1st of 230

- Quant Industry Rank (as of October 30, 2026): 1st of 17

Marathon Petroleum is one of America’s largest refiners, possessing substantial refining and midstream assets, and provides a compelling non-tech opportunity. It’s also a PRO Quant Portfolio member, delivering shareholder value through profitability, operational efficiency, and cash generation across various energy markets—a track record reflected in its dividend safety and 14 consecutive years of payouts. Capital allocation is crucial—robust cash generation supports shareholder returns via dividends and buybacks, but the size of those returns depends on the operating environment and management decisions.

MPC’s solid dividend profile is also why, as of June 3, 2026, it was included in the new “Quant Growth & Income Portfolio”—a systematic model focused on yield, growth, and safety with an aim to outperform dividend ETFs. Marathon has contributed 63% returns to the QG&I portfolio, and recent geopolitical tensions have underscored the importance of global energy security.

For refiners like MPC, the margin between crude input costs and refined product values is a key profitability driver. When refined product markets tighten, margins may expand, supporting stronger earnings and cash flow. Marathon also benefits from its operational scale, infrastructure network, and exposure to the broader transportation and industrial economy. Its strong balance sheet and performance are reflected in a consistent streak of earnings beats, most recently with Q2 2026 EPS of $17.73 (beating by $3.78) and $52.34 billion in revenue (up over 53% YoY). While the company maintains bullish momentum and industry-leading capital returns, it still trades at a relative discount—a forward non-GAAP PEG 81.73% lower than the sector.

So why include Marathon Petroleum in an article about AI-driven FOMO?

Because investors shouldn’t mistake an attractive investing environment for a requirement to own only tech stocks. The expansion of AI infrastructure is happening alongside massive investment in industrial facilities, logistics networks, transportation, and the global energy system. If economic activity stays resilient, refining margins remain favorable, and investors rotate toward cash-generating firms and away from crowded tech trades, MPC could benefit from any post-midterm rally. For investors seeking broader economic cycle exposure, MPC presents an opportunity very different from semiconductor stocks.

4. Bloom Energy (BE)

- Market Cap: $65.72 billion

- Quant Rating: Strong Buy

- Quant Sector Rank (as of October 30, 2026): 4th of 626

- Quant Industry Rank (as of October 30, 2026): 1st of 17

One of the biggest bottlenecks for the AI revolution is not chip availability but power availability. Bloom Energy’s exposure targets the critical infrastructure needed for AI buildout—not the compute hardware itself.

As technology companies invest heavily in new data centers, utilities and grid operators face increasing pressure to deliver reliable electricity at the necessary scale and speed—Bloom Energy’s entry point. Building new transmission infrastructure and expanding grid capacity can take years. For firms seeking quick deployment of AI computing infrastructure, delays in accessing sufficient power are a significant operational hurdle. BE’s solid oxide fuel cell systems generate power close to the point of use.

Its distributed power solutions can serve as alternatives or supplements to public grid power, which may appeal to customers with large and time-sensitive power needs.

Data centers represent a particularly interesting opportunity. Unlike many traditional commercial buildings, AI data centers run 24/7 and require extremely high levels of power reliability. Interruptions are costly, and access to sufficient electricity can determine where facilities are built. Bloom’s technology has the potential to help some customers meet these challenges via on-site generation. Rising interest in resilient power infrastructure may also expand Bloom’s addressable market beyond just commercial and industrial clients.

Finally, greater project sizes and increased manufacturing scale may unlock ongoing revenue growth and operating leverage. The company has a consistent history of earnings beats, most recently with Q3 2026 EPS of $0.94 (a $0.27 beat) and $1.24 billion in revenue (up nearly 139% YoY)—with solid momentum.

Healthcare: Finding Stocks Beyond the AI Trade

Combining healthtech and AI-driven workflows for efficiency, the last recommended stock highlights a sector where a company’s own profitability, operational improvements, and shifts in investor sentiment are opening doors beyond the performance of semiconductor stocks. One lesson from previous rallies: leaders ultimately broaden out, and investors who focus solely on the hottest sectors miss out on opportunities in industries with improving fundamentals.

5. Nutex Health (NUTX.US)

- Market Cap: $1.44 billion

- Quant Rating: Strong Buy

- Quant Sector Rank (as of October 30, 2026): 14th of 928

- Quant Industry Rank (as of October 30, 2026): 1st of 19

Nutex Health is a medical services company focused on micro-hospitals and related healthcare businesses. Unlike the chip and energy companies discussed above, Nutex’s investment logic is primarily driven by healthcare utilization, reimbursement mechanisms, operational execution, and the economics of its hospital network.

Micro-hospitals represent a differentiated model for healthcare delivery. These facilities are typically smaller than traditional hospitals and can provide emergency, inpatient, and other medical services in targeted markets. This approach offers expansion opportunities, but profitability depends on patient demand, reimbursement rates, staffing, and site-level operating performance.

The reimbursement environment for Nutex is highly complex, making revenue collection, payer relationships, regulatory changes, and operational efficiency especially important considerations.

For investors, improvements in patient volume and operating margins—if translated into sustainable cash flow and earnings growth—can be a catalyst. NUTX scores “A” across all factor grades, with diluted EPS up 172.78% YoY (sector median: 16.78%) and net margin (TTM) exceeding its sector by over 2927%.

This is not a stock to consider solely because the market might rally after the midterms. Smaller healthcare companies can experience large price swings when operating results improve, partnerships and joint ventures are formed, or investor attention increases. A broader risk-on backdrop may help, but company fundamentals must ultimately drive share price performance. While NUTX has shown strong quarterly momentum, its GAAP P/E remains a 70% discount. Though Nutex is a more speculative play beyond direct AI investments, alongside my other four “Strong Buy” picks, I hope investors will see that quant rating tools help cut out emotion and focus on fundamentals.

Don’t Let FOMO Replace Fundamentals

Uncertainty drives markets, but monetary policy and global geopolitics are just as influential. As the midterms approach, another wave of AI enthusiasm may sweep the market, but sustainable investment returns will ultimately depend on fundamentals, not headlines.

Investors who maintain a focus on diversification, quality, positive earnings revisions, and risk-reward opportunities will be better equipped to handle choppy times ahead. The next chapter of the rally may be driven by companies that prove they can turn powerful industry tailwinds into even stronger earnings and cash flow. And if history is any guide, the period following the midterms could provide another compelling installment in this bull market.

These five recommended picks have fundamentally stronger profiles than some of the battered stocks weighing the Nasdaq and S&P 500, exhibiting better growth rates and robust valuation frameworks.