AI remains core of 2026 Wall Street investment playbook

Summary

Global brokerages are doubling down on the view that artificial intelligence will stay at the heart of equity investment strategies in 2026, according to a new Reuters survey of market outlooks. Strategists argue that fears of an imminent "AI bubble" bursting are overdone, pointing to continued economic expansion and central bank easing as additional tailwinds for stocks. At the same time, they flag real risks: stubborn inflation, high valuations and potential tariff shocks could trigger sharp corrections even if the longer-term AI story holds. The piece underscores that many portfolio managers now see AI exposure—whether via chipmakers, cloud providers or software platforms—as a structural allocation rather than a trade. That shift matters because it suggests AI-heavy benchmarks like the S&P 500 could remain supported even if earnings growth normalizes from 2025’s torrid pace.