Investors are advised by a $12 billion investment chief not to count on AI-driven trades for returns in 2026.

AI Stocks: A Shift in Market Sentiment for 2026

• While most analysts on Wall Street remain optimistic about artificial intelligence investments in 2026, not everyone shares this enthusiasm.
• Peter Boockvar, Chief Investment Officer at OnePoint BFG Wealth Partners, offers a more cautious perspective.
• He recommends that investors avoid depending solely on AI-related stocks to fuel market growth this year.

Despite the prevailing confidence in AI among financial experts, Boockvar, who oversees investments at a $12 billion firm, warns against putting all faith in this sector. He believes that, although AI stocks delivered impressive returns in 2025, the best opportunities in 2026 may be found elsewhere.

Major technology companies such as Nvidia, Meta Platforms, and Microsoft have experienced a rocky start to 2026. According to Boockvar, the rapid expansion seen in previous years is unlikely to continue, and the dominance of these firms may be waning.

He suggests that AI will not serve as the primary engine of market gains as it has in recent years. Instead, investors will need to be more discerning when choosing where to allocate their capital.

"Relying blindly on AI technology stocks as market leaders is risky. There are many other sectors that now offer strong potential," Boockvar advises.

Speaking on CNBC, Boockvar noted that the market is gradually shifting away from favoring high-profile AI stocks. He believes some investors may be overlooking signs that the sector’s momentum is fading.

He explained, "In 2026, the AI technology trade appears to be losing its edge. For example, the market reacted negatively to Nvidia's recent earnings, and Meta was penalized for overspending."

Boockvar also pointed to challenges faced by other leading AI firms. Oracle reported disappointing third-quarter results, raising concerns about excessive investment in AI. Meanwhile, CoreWeave saw its stock soar by 90% in 2025, yet persistent worries remain about its high debt levels and uncertain profitability.

Boockvar commented, "The AI sector is becoming more fragmented. Investors are starting to recognize that not every company will come out ahead—there will be both winners and losers."

He also cited the surge in capital expenditures during 2025 as a reason for his cautious outlook, arguing that companies should broaden their investments beyond just building data centers.

"Last year’s capex boom was all about data centers," he said. "With new tax incentives in 2026, hopefully other industries will benefit and drive growth."