The AI tech trade remains active as investors scrutinize potential winners for 2026. Tech stocks like XLK have fluctuated due to funding concerns for Oracle and construction delays from CoreWeave. Micron’s strong Q1 results boosted AI trades, echoing Nvidia’s catalyst for the sector in May 2023.

Investors are wary of funding risks in the AI trade, especially after Blue Owl Capital withdrew support for Oracle’s data center project. Market concentration among S&P 500 tech giants raises concerns about potential disruptions within the sector.

Goldman Sachs predicts over 12% earnings growth in 2026 driven by top tech stocks like Nvidia, Apple, Microsoft, and others. The “Magnificent 7” tech players are up 21% this year, outperforming the S&P 500 by 5%. Winners and losers are expected within the group in the coming year.

Sevens Report Research founder anticipates a split within tech stocks, favoring Alphabet for Google’s AI product. Companies like Oracle, with questionable AI spending, may face challenges. Oracle shares rose 7% after securing a deal with TikTok, seen as a buying opportunity by some analysts.

Guggenheim analyst praises Oracle’s superior cloud infrastructure and profitability, driving optimism for the stock. Wall Street strategists foresee equities rising in 2026, citing looser monetary policy and the continued strength of the AI trade. UBS projects the index to reach 7,700 by year-end, a 13% increase.

Alphabet CEO Sundar Pichai speaks at a Google I/O event in May 2025. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre. For the latest cryptocurrency news and financial updates, visit Yahoo Finance.

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