AI hyperscalers like Nvidia, Oracle, and Google saw gains as Wall Street opened the new year with optimism for continued growth in the AI and Big Tech sectors. Other AI-focused companies, including Meta, Microsoft, and Amazon, also experienced gains in early trading.

Despite concerns about lofty valuations and excessive spending in the AI sector, Wall Street remains bullish on the industry. An ETF tracking the sector has returned over 13.5% in the past six months, with analysts predicting another year of double-digit gains akin to the late 1990s tech boom.

HSBC’s head of equity strategy for the Americas, Nicole Inui, foresees tech leading the market with high return concentration and transformative new technologies driving equities. Goldman Sachs strategist Peter Oppenheimer notes risks of over-concentration and high valuations but believes investor optimism could override bearish narratives.

Read more at Yahoo Finance: Dow, S&P 500 edge higher to kick off 2026, semiconductor stocks rally