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The AI Investing Pulse

January 8th, 2026

In this Week’s Edition:

1. Analysis - The first AI investing signal of 2026: AI infrastructure beneficiaries

2. Stock Ideas - 5 small and mid-sized stocks for long-term gains

3. News - European AI stocks to watch in 2026

4. Startups - Ten AI startups to watch in 2026

5. Trends - Investors pick their AI winners and losers for 2026

6. Other News - AI won’t take all the jobs, says Wharton engineer

7. Video - What investors should watch - Markets & 2026 Outlook

The First AI Investing Signal of 2026: AI Infrastructure Beneficiaries

Throughout 2025, market leadership in AI was dominated by hyperscalers. Investor focus centred on who was spending the most, who controlled the leading models, and who could scale AI platforms fastest.

As 2026 begins, early market behaviour suggests that attention may be starting to shift.

Rather than broad index strength or continued hyperscaler outperformance, gains in the opening days of the year are increasingly concentrated in the most capital-intensive parts of the AI ecosystem. These are the physical systems required to build, power, and deploy AI at scale.

Within the AIIP framework, early leadership is emerging most clearly in Hardware & Infrastructure, while the broader market has moved far more modestly.

Early 2026 Performance (YTD)

• Hardware & Infrastructure: +10.30%
  Data centres, compute infrastructure, semiconductor packaging

• Networks & Connectivity: +5.16%
  Data transport, satellite, and connectivity infrastructure

• Quantum: +4.93%
  Early-stage and future-facing technologies

These figures are based on the AIIP’s AI Stack rather than standard index classifications, so they should be read as directional rather than definitive.

Early signs suggest that market leadership is forming around the physical build-out of AI capacity, rather than abstract AI narratives. Against this backdrop, a well-known seasonal indicator has also been triggered.

The start of the trading days of 2026 have concluded positively, activating the Rule of the First Five Days. According to Fundstrat, when the first five days of the year are positive, the market finishes the year higher 84% of the time, with an average return of 16%.

What matters most, however, is not the signal itself, but where leadership is forming.

So far, the early evidence points to the Capex Chain, where hyperscaler spending increasingly benefits companies involved in building and enabling AI infrastructure.

The Capex Waterfall: Follow the Money

AI investment begins with hyperscalers, but the effects of that spending often appear first in the companies building the physical infrastructure.

While hyperscalers commit multi-year budgets, capex beneficiaries tend to see activity earlier as projects move from planning to construction and deployment.

So far this year, the three best-performing stocks year to date sit directly in this part of the chain, highlighting how early 2026 performance leadership is coming from physical infrastructure rather than software or model-centric businesses.

Amkor Technology, Inc. $AMKR ( ▼ 3.83% )  

Sector / Industry: Technology / Semiconductors
AI Stack Layer: Hardware & Infrastructure (Semiconductor Packaging)
Market Cap: $13B
Performance (YTD): ▲ 33.5%
Growth/Fundamental Score: 11 / 100
Relative Strength (RS): 83 / 100
Ranking Status: Momentum

What It Does
Amkor packages and tests computer chips before they are deployed in data centres.
Chip packaging is what turns a manufactured AI chip into a usable component that can be installed and run inside a data centre.

Why Capex Flows Here
As hyperscalers invest in AI compute, advanced chips cannot be deployed without sufficient packaging capacity. Packaging has become a practical bottleneck in the build-out process, directing capex towards firms that can deliver this capability at scale.

Capex Sensitivity
High. Direct exposure to AI chip deployment volumes.

Hut 8 Corp. $HUT ( ▲ 0.1% )  

Sector / Industry: Technology / Data Centres & Compute Infrastructure
AI Stack Layer: Hardware & Infrastructure
Market Cap: $6.2B
Performance (YTD): ▲ 26.0%
Growth/Fundamental Score: 61 / 100
Relative Strength (RS): 94 / 100
Ranking Status: Momentum

What It Does
Hut 8 owns and operates large-scale data centres that provide the space, power, and infrastructure required to run energy-intensive computing workloads.

Why Capex Flows Here
Building new AI data centres takes time and requires power approvals. As a result, spending increasingly flows towards operators that already control land, energy access, and physical facilities.

Capex Sensitivity
High. Linked to data-centre build-outs and power availability.

Camtek Ltd. $CAMT ( ▼ 1.42% )  

Sector / Industry: Technology / Semiconductor Equipment
AI Stack Layer: Hardware & Infrastructure (Inspection & Metrology)
Market Cap: $6B
Performance (YTD): ▲ 24.5%
Growth/Fundamental Score: 54 / 100
Relative Strength (RS): 77 / 100
Ranking Status: No Ranking

What It Does
Camtek makes machines that inspect computer chips during manufacturing to ensure they are free from defects.

Why Capex Flows Here
As AI chips become more complex and expensive, production errors become increasingly costly. This drives investment into inspection equipment to protect yields.

Capex Sensitivity
Moderate to high. Exposure to advanced packaging and inspection investment.

Final Take

The Rule of the First Five Days has flashed green, but the signal remains structural rather than directional.

Early 2026 market behaviour suggests leadership is emerging among capex beneficiaries tied to the physical build-out of AI infrastructure. Hardware, compute, packaging, and supporting equipment are where spending meets real-world constraints.

Amkor and Hut 8 qualify as momentum stocks under our methodology, with Camtek sitting just below the momentum threshold. Across all three, however, growth and fundamental scores currently remain below our required threshold.

At this stage, the focus remains on identifying early signals, understanding how AI infrastructure spending is being allocated, and monitoring how these trends develop as the year progresses.

_{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}

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TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

5 small and mid-sized stocks for long-term gains – Yahoo Finance Five carefully selected small and mid-sized companies that could deliver attractive long-term returns for investors willing to look beyond large-cap names.

One AI stock for 2026 - Yahoo Finance
A look at how AI investing may shift in 2026 towards software-led opportunities, with expectations for stronger IPOs and increased M&A.

Five AI and robotics ETFs for 2026 - 24/7 Wall St.
Five AI and robotics ETFs positioned for a potential 2026 investment supercycle, offering diversified exposure as demand for AI-driven technologies accelerates.

AI STOCKS & ETFS NEWS

European AI stocks to watch in 2026 - Morningstar
A European perspective on AI investment opportunities, highlighting ASML, Siemens and SAP as potential beneficiaries of an AI-led productivity and process boom.

90% of investors plan to own AI stocks in 2026 - The Motley Fool
Survey data shows strong optimism around AI investing, with 36% of investors planning to increase exposure and 62% confident in long-term returns, particularly among younger and higher-income demographics.

AI-driven inflation may be 2026’s most overlooked risk - Reuters
Investors warn that rising energy demand from data centres and increasing AI infrastructure costs could fuel inflationary pressures that markets are underestimating.

AI STARTUPS

Ten AI startups to watch in 2026 - CRN
A curated list of emerging AI startups gaining momentum in 2026, reflecting where innovation and venture capital are converging.

LMArena hits $1.7bn valuation in $150m Series A - Yahoo Finance
The AI evaluation platform raised $150 million, tripling its valuation as it expands model comparison tools and launches enterprise-focused services.

xAI raises $20bn in Nvidia-backed funding round - The Economic Times
Elon Musk’s xAI secured $20 billion in Series E funding, lifting its valuation above $230 billion and accelerating investment in data centres and model development.

AI TRENDS

Investors pick their AI winners and losers for 2026 - Quartz
An analysis of how AI adoption is creating clear winners and laggards, with execution, infrastructure and strategy determining returns.

What’s next for AI in 2026 - MIT Technology Review
Predictions covering agentic AI, open-source momentum, governance challenges and the race to scale AI infrastructure.

Nine AI agent trends businesses should know for 2026 - WhatTech
Key AI agent trends expected to reshape business operations, from multi-agent orchestration to agent-native startups, with strong market growth forecasts.

Building an AI-ready workforce matters more than buying tech - ANI News
A reminder that AI success depends on skills and workforce readiness, not just technology spend, according to Google’s latest AI report.

OTHERS

AI won’t take all the jobs, says Wharton engineer - Technical.ly
A perspective arguing that AI will reshape work rather than eliminate it entirely, creating new roles while keeping humans central to decision-making.

Highlights from Las Vegas CES 2026 - PBS NewsHour
Key announcements from CES 2026, showcasing advances in AI, robotics and smart devices from companies including Bosch, Hyundai and AMD.

VIDEOS

Tom Lee on markets, Bitcoin and the 2026 outlook - CNBC

_{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}