3 Stocks to Watch In 2026 As AI Spending Becomes a Hot Topic

"The artificial intelligence trade is one that's become integral to the U.S. economy, and in some ways, to the global economy. That's because the sheer size of these AI behemoths means that more and more capital is becoming concentrated around one trend, which if unwound, could send ripple effects across global markets. Most investors are certainly not banking on such a wind down, but it's also true that leverage and valuations have increased to levels we haven't seen in decades."

"In that regard, there are many pundits, analysts and investors who believe that the absolute levels of AI-related spending we're seeing right now are likely unsustainable. There's good reason for such a thought process, with budgets for most companies on compute skyrocketing to incredible levels in recent years. Among the top three stocks many analysts have pointed to as companies that could be looking to cut down on their AI spending in this current environment are the following names."

"Among the Magnificent 7 stocks I'm still bullish on, Meta Platforms ( NASDAQ:META) is a company that's tied itself to various growth trends over the years. Whether we're talking about social media (the company is formerly known as Facebook, after all), the metaverse (hence, the name change) or artificial intelligence, this is a company that likes to ride growth trends to new all-time highs."

The artificial intelligence trade has become integral to the U.S. and global economies because large AI companies concentrate capital. Leverage and valuations tied to AI have climbed to levels not seen in decades, increasing systemic risk if the trend unwinds. Many pundits, analysts, and investors see current AI-related spending as likely unsustainable as compute budgets for companies have skyrocketed. Analysts have named several large-cap stocks that could cut AI spending in this environment, including Meta Platforms. Meta monetizes billions of users, leverages AI for ad targeting and recommendations, and continues to invest in its metaverse Reality Labs division.

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