Many Wall Street heavyweights remain optimistic about the continued boom in artificial intelligence (AI) trading, but Peter Boockvar, chief investment officer of investment consulting firm OnePoint BFG Wealth Partners, cautioned investors to be cautious and not to put all their eggs in one basket in 2026.
The company manages $12 billion in assets. Boockvar believes that while artificial intelligence will deliver amazing returns for investors by 2025, the greater opportunities actually lie outside of AI trading.
In fact, many tech giants, including Nvidia, Meta, and Microsoft, have had a "bad start" to 2026. Boockvar warned in a recent episode that the industry's previous growth momentum is unsustainable and the dominance of tech giants is coming to an end.
In his view, AI trading will not become the main driver of the market as investors have become familiar with in recent years. While growth opportunities still exist, careful selection will become even more important.
“Investors should not blindly rely on the artificial intelligence technology sector as a leader, but should recognize that there are many other sectors in the market that are currently performing well,” he added.
Boockvar emphasizes that market sentiment is slowly shifting, which is unfavorable for well-known AI stocks. In his view, the market is already showing signs of fatigue, but some investors may be overlooking this.
“I believe that the dominance of AI technology will diminish in 2026,” he said. “We saw the market’s reaction to Nvidia’s earnings report a few months ago. We also saw the market punishing Meta for its overspending.”
Boockvar mentioned other top AI companies (such as Oracle) also facing difficulties, with the company's poor third-quarter results raising concerns about overspending on AI; he also mentioned CoreWeave, whose stock has surged 90% in 2025, but continues to be subject to concerns about its excessive debt and potential lack of profitability.
“I think the industry is becoming more fragmented, and we’ve reached a point where investors realize they can be both winners and losers,” he added.
Finally, Boockvar reiterated that the surge in capital expenditures in 2025 is part of his bearish view this year, arguing that companies should diversify their spending beyond data centers.
“All capital expenditure growth in 2025 will be used for data center construction,” he said. “Hopefully, by 2026, other sectors of the economy will follow suit, driven by tax incentives.”
