University of Kwazulu-Natal

Fidelity Fund Manager Offers 2026 Tech Stocks Forecast

Bonisiwe Shabane
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fidelity fund manager offers 2026 tech stocks forecast

Reading through dozens of 100-page investment outlooks to identify common themes for the year ahead is a daunting task. Fortunately, there are some great tools available to summarize research reports sift through all the different points of view. Below are four major themes common in most of the 2026 investment outlooks. After reviewing 18 reports, four themes emerged again and again in the 2026 outlooks. Several firms referred to what is happening in AI as an infrastructure revolution. Fears of another tech bubble are understandable, but the current AI boom is fundamentally different from the dot-com era.

Analysis from Barclays and Morgan Stanley point to the fact that today’s leaders are highly profitable, cash-generative companies, unlike their speculative, often profitless, counterparts from the dot-com bubble. Hyperscaler capital expenditures are expected to continue, with increased investment in sourcing energy to meet growing demand. The data centers required to train and run advanced AI models are incredibly power-intensive. Goldman forecasts indicate that power demand from data centers is set to grow by more than 175% by 2030 compared to 2023 levels, creating a massive, long-term investment theme in energy and utilities infrastructure. Fidelity semiconductor analyst Jonathan Tseng addressed the doubters nervous about ROI on the huge infrastructure spend: “So far, AI models continue to improve and productisation is proceeding rapidly.

If that works, then everything else will work. Trying to claim that you conclusively know that AI doesn’t deliver value based on old data and old models is like looking at the Wright Flyer and deciding that mass air travel will never... Written by Vance Cariaga for GOBankingRates-> The technology sector has enjoyed a strong run on Wall Street so far in 2025, driven by heavy investment in AI and pushing the tech-heavy Nasdaq up by roughly 18% year-to-date. Try This: Self-Made Millionaires Suggest 5 Stocks You Should Never Sell Check Out: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)

But that run could be headed for a major speed bump next year. If that happens, it could spell big trouble for investors who believe the current AI surge has plenty of room to run. AMD and Unity Software have the potential to deliver accelerating growth next year. There's been some choppy activity in the stock market in October as the intensifying trade war between the U.S. and China has rattled investors. But the outlook for growth in the technology sector remains favorable, and that has created buying opportunities.

It's all about artificial intelligence (AI). Spending on AI infrastructure is booming, which could position chip designer Advanced Micro Devices (AMD 1.62%) for a big year in 2026. Another unexpected beneficiary of the AI trend is Unity Software (U +3.27%), which could see accelerating revenue next year, fueled by its AI-powered advertising product. Here's why these stocks could have room to run. AMD offers a diversified portfolio of chips for data centers, video game consoles, PCs, and AI workloads. The stock is up 90% in 2025 so far.

The company is well positioned to capture more growth from the data center market. Several leading AI companies, including Microsoft and Tesla, are using its chips, and CEO Lisa Su recently called AI "the most transformative technology in the last 50 years." Suchat longthara/iStock via Getty Images I have been buying select stocks recently when I see a strategic opportunity or a pull back that appears to be overdone, which is why I started buying Amazon again. But, overall I have been bearish on the market and I expected a Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN, GOOGL, META either through stock ownership, options, or other derivatives.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole.

Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Unfortunately, the page you requested is temporarily unavailable. Please try again later or call 1-800-522-7297 between the hours of 8:30AM – 7:00PM EST Akamai Reference Number: 18.a4d02e17.1764689813.af8cd9e9 Investors looking for a blend of red-hot winners and beaten-down cash cows have come to the right place.

With a little over two months left in the year and the major indexes hovering around all-time highs, many investors may be feeling uneasy about stock market valuations and how long the artificial intelligence... Whereas others may view AI as a game-changer that will boost productivity, earnings growth, and investment returns over the long run. Regardless of where you stand, it's a mistake to overhaul your investment strategy based on emotion. A better approach is to be selective by targeting companies you believe are worth their valuation, even if there's an economic downturn, a slowdown in AI spending, or any other factor that could throw... Here are five growth stocks I'm particularly excited about for 2026. With many AI stocks trading at premium valuations, investors need to ensure that they aren't just betting on one aspect of the AI value chain.

Nvidia (NVDA +1.50%), Oracle (ORCL 0.56%), and ASML (ASML +2.71%) are three completely different companies with multi-year growth potential from AI.

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