🎉The AI Investing Pulse🎉

January 1st, 2026

In this Week’s Edition:

1. Analysis - AI Investing in 2026: consensus, conviction, and caution

2. News - Why 2026 could decide the AI trade

3. Startups - A crowded IPO pipeline emerges for 2026

4. Trends - Energy pressures mount as AI demand accelerates

5. Other News - The biggest science breakthroughs of 2025

6. Video - Dan Ives on the top tech stocks for 2026

AI Investing in 2026: Consensus, Conviction, and Caution

Happy New Year to everyone, and we wish you a healthy and successful 2026!

As the new year begins, we take stock of where analyst consensus is forming in AI. We bring together perspectives and stock picks from major banks, research houses, and financial media to assess how artificial intelligence is being positioned heading into the year ahead.

Across this curated sample, AI is no longer treated as a single trade dominated by GPUs. Instead, it is viewed as a layered ecosystem spanning semiconductors, infrastructure, cloud platforms, and software monetisation. Conviction remains strongest where demand is visible and durable, while disagreement persists around valuation, speculation, and timing.

Within this group, 2026 is consistently framed as a transition year. Not the beginning of the AI cycle, and not its peak, but the midpoint of a long, capital-intensive build-out. Focus is shifting from first-wave excitement toward infrastructure depth, scalability, and sustainable monetisation.

The views outlined below reflect some perspectives within the market, but they do not represent the market as a whole. The stock picks referenced come from a selection of leading banks, research houses, and financial media.

J.P. Morgan

Centres on the “Broadening AI Trade”, arguing that leadership in 2026 shifts away from GPUs towards the infrastructure required to run AI systems at scale.

Stock Picks

• Broadcom (AVGO)
• Marvell Technology (MRVL)
• Analog Devices (ADI)
• Micron Technology (MU)

The Motley Fool

The list spans diversified AI ETFs, high-conviction platform leaders, speculative exposure to emerging technologies like quantum computing, and stocks where elevated valuations call for caution.

Stock Picks

ETFs
• Roundhill Generative AI and Technology (CHAT)
• iShares Future AI and Tech (ARTY)

Stock Picks
• Alphabet (GOOG/GOOGL)
• Taiwan Semiconductor Manufacturing (TSM)
• Broadcom (AVGO)
• Amazon (AMZN)

Speculative
• D-Wave Quantum (QBTS)

Cautious List
• Palantir (PLTR)
• C3.ai (AI)
• Rigetti Computing (RGTI)

Bank of America

Takes a long-term view, framing AI as a decade-long infrastructure build-out with 2026 positioned as the midpoint rather than the peak.

Stock Picks

• ASML
• Lam Research (LRCX)
• Nvidia (NVDA)

Morningstar

Applies a strict value lens, highlighting AI-exposed companies with wide economic moats and valuations viewed as attractive relative to long-term cash-flow potential.

Stock Picks

• Microsoft (MSFT)
• Meta Platforms (META)
• Alibaba (BABA)
• Oracle (ORCL)

Dan Ives / Wedbush

Emphasises the application layer of AI, focusing on companies expected to monetise AI through software, platforms, and consumer ecosystems.

Stock Picks

• Microsoft (MSFT)
• Palantir (PLTR)
• Apple (AAPL)
• Tesla (TSLA)
• CrowdStrike (CRWD)

Benzinga

Highlights laggards from 2025 that may benefit from identifiable AI-driven catalysts in 2026.

Stock Picks

• Apple (AAPL)
• Adobe (ADBE)
• Palo Alto Networks (PANW)
• Target (TGT)

Zacks

Combines quantitative ranking systems with fundamental analysis to surface large-cap opportunities linked to autonomy, valuation, and scale.

Stock Picks

• Tesla (TSLA)
• Alphabet (GOOGL)

Tom Lee / Fundstrat

Takes a more macro-aware approach to 2026, favouring stocks he sees as well positioned as rate sensitivity, valuation discipline, and a potentially more dovish Federal Reserve shape market conditions. He remains constructive on technology, while also highlighting opportunities across a broader mix of sectors.

Stock Picks

• Nvidia (NVDA)
• AMD (AMD)
• Meta Platforms (META)
• Goldman Sachs (GS)
• Arista Networks (ANET)

Cautious List

• CrowdStrike (CRWD)
• Costco (COST)
• Palo Alto Networks (PANW)
• Tesla (TSLA)

Stocks with the Broadest Cross-Source Consensus

Across all sources, a small group of names appears repeatedly, forming the closest thing to a shared conviction list for 2026. Broadcom $AVGO ( ▼ 1.07% ), Alphabet $GOOG ( ▼ 0.24% )  , Nvidia $NVDA ( ▼ 0.56% )  , Apple $AAPL ( ▼ 0.45% )  , Microsoft $MSFT ( ▼ 0.79% )  , Meta Platforms $META ( ▼ 0.88% )  , and Tesla $TSLA ( ▼ 1.04% ) are referenced most frequently, reflecting broad agreement around large-scale platforms and infrastructure enablers.

At the same time, several stocks stand out as polarising within this sample, appearing both as positive picks and on valuation-driven or cautious lists. Palantir, Tesla, CrowdStrike, and Palo Alto Networks fall into this category, highlighting areas where conviction is balanced by concerns around pricing, timing, or execution.

Final Take

Across this sample, the dominant 2026 view remains anchored in AI infrastructure and platforms. Analysts show the highest conviction in custom chips, networking, memory, and semiconductor equipment, where demand is visible and multi-year spending can be modelled with confidence.

There is broad agreement that AI’s long-term value will ultimately be realised at the application layer, but this has yet to translate into clear stock leadership. Instead, analysts are sequencing conviction, prioritising what is investable and measurable today while keeping applications under close watch.

A similar dynamic applies to energy. While AI’s power intensity is widely acknowledged, energy is largely treated as a constraint rather than an opportunity. As a result, both applications and energy sit in a second tier that could drive the next rotation if current assumptions are challenged.

Taken together, this suggests that 2026 may be less about chasing a single breakout theme and more about selective shifts in focus. Infrastructure and platforms remain the core expression of AI conviction today, but in 2026, attention may increasingly turn to who can apply AI effectively, monetise it sustainably, and manage the power and efficiency trade-offs that come with operating at scale.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

^{About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS & ETFs NEWS

Why 2026 could decide the AI trade – MSN
Analysts argue 2026 will be pivotal for AI investing, as focus shifts from infrastructure build-out to execution and real-world value.
Read more

Meta’s $2bn Manus deal highlights Singapore base – Fortune
Meta is acquiring Manus for around $2 billion to accelerate its AI capabilities. The deal strongly emphasises Manus’s Singapore headquarters to limit geopolitical exposure and reassure regulators and investors.
Read more

AI infrastructure stocks outpace Nvidia in 2025 – CNBC
Lumentum, Celestica and Seagate delivered stronger year-to-date gains than Nvidia in 2025. Demand for optical components, server manufacturing and high-capacity hard drives has surged as AI infrastructure spending accelerates and supply chains remain tight.
Read more

Agentic AI raises fresh cybersecurity concerns – Yahoo Finance
As agentic AI systems become more autonomous, cybersecurity risks are increasing. Experts warn of new vulnerabilities, tougher detection challenges and the urgent need for more advanced defences.
Read more

AI stocks hold momentum despite market swings – Investor’s Business Daily
AI equities continue to show resilience, with Nvidia and Broadcom leading gains. Investors are balancing valuation concerns against long-term growth, while hyperscalers keep ramping up AI infrastructure investment.
Read more

AI STARTUPS

A crowded IPO pipeline emerges for 2026 – Access IPOs
More than 70 startups are expected to go public in 2026, including Cerebras, Cohesity, Notion, Airtable and Clario. The list reflects renewed confidence in public markets and sustained interest in AI-driven businesses.
Read more

The most influential corporate investing stories of 2025 – Global Venturing
This roundup highlights the defining trends in corporate investing during 2025, showing how strategic investors increasingly backed AI, consumer tech and sector-specific innovation to drive long-term growth.
Read more

AI TRENDS

Energy pressures mount as AI demand accelerates – Straight Arrow News
Rising electricity demand from AI workloads is reshaping energy markets. Higher power prices, grid reliability concerns and policy changes are expected to define the energy landscape in 2026.
Read more

Agentic AI in 2025 and the challenges ahead – Fast Company
A Fast Company podcast explores how agentic AI evolved in 2025, focusing on enterprise adoption, growing capabilities and the rising need for trusted AI partners as businesses undergo deep transformation.
Read more

What leading AI models predict for 2026 – TechRadar
ChatGPT, Gemini and Claude forecast AI becoming more ambient and proactive in everyday life, with deeper integration into communication, work and personal productivity.
Read more

OTHERS

The biggest science breakthroughs of 2025 – LiveMint
From first-light telescope discoveries to major quantum advances, 2025 delivered landmark scientific progress that deepened our understanding of the universe and pushed technological boundaries.
Read more

VIDEOS

Dan Ives on the top tech stocks for 2026 – CNBC
Read more

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}