Wall Street continues to show optimism toward artificial intelligence (AI) investments, but cautionary notes are being sounded by some industry leaders. Peter Boockvar, chief investment officer of OnePoint BFG Wealth Partners, a firm managing $12 billion in assets, is urging investors to be judicious and not solely anchor their expectations on AI technology. Despite the impressive gains AI-related stocks provided in 2025, Boockvar suggests that the real opportunities may lie beyond this sector as some of the biggest names in technology face setbacks.
As 2026 unfolds, major players such as Nvidia, Meta Platforms, and Microsoft have encountered challenges, indicating a potential shift in market dynamics. Boockvar articulated that the previous surge in the AI sector may not be indicative of sustainable growth. “I do think in 2026 the AI tech trade is losing some steam in terms of its dominance,” he stated. He emphasized that this evolution signals a need for investors to reassess their strategies and diversify their investment portfolios.
The market’s recent reaction to earnings reports from prominent companies supports Boockvar’s perspective. He noted that Nvidia experienced a lackluster response following its financial update, while Meta faced scrutiny for its high expenditure levels. Other companies in the AI space, like Oracle, have also raised red flags with disappointing third-quarter earnings that prompted concerns about overspending on AI initiatives. Additionally, CoreWeave, which saw its stock price skyrocket by 90% in 2025, has drawn attention for its significant debt load and questions surrounding its profitability.
Boockvar pointed out that the ongoing turmoil illustrates a “differentiation” in the AI trade, suggesting that investors can expect to see both winners and losers as the market evolves. His outlook is further shaped by a notable increase in capital expenditures (capex) in 2025, primarily focused on data center construction. He believes there should be a shift in investment focus for the upcoming year, encouraging companies to broaden their spending priorities beyond just data centers.
“I think that entire trade is becoming more differentiated,” Boockvar remarked. “Hopefully in 2026, with the tax incentives in terms of immediate expense, other parts of the economy can take that baton.” This sentiment underscores his call for a comprehensive reassessment of investment strategies, urging investors to look for opportunities outside the immediate AI spotlight.
