Gene Munster, co-founder of Deepwater Asset Management, expresses a confident outlook for the AI sector and its influence on the tech market, anticipating a robust continuation of the AI trade through at least 2026. Known for his insightful analysis on technology trends, Munster recently articulated his forecasts during an interview with CNBC, emphasizing that despite some end-of-year 2025 concerns about a potential bubble and capital expenditure hesitations, leading AI stocks are positioned for further gains.
Munster foresees a sustained boost in the markets over the next few years, primarily driven by the ongoing growth of AI. He predicts that the Nasdaq could achieve over a 10% increase, with AI-first companies significantly surpassing this benchmark. He reassured investors that although high valuations may be a topic of discussion, top tech firms will likely continue to exceed Wall Street’s earnings predictions.
In the immediate future, Munster is particularly excited about upcoming presentations from renowned CEOs Jensen Huang of Nvidia and Lisa Su of AMD at the Consumer Electronics Show (CES). He anticipates that their addresses may rejuvenate enthusiasm in the AI sector. Notably, Huang is expected to highlight Nvidia’s ongoing struggle to meet demand for its AI chips, which could further spark investor interest.
Additionally, Munster is keen on spotlighting Apple as a key tech stock for 2026. He believes Wall Street has not fully acknowledged Apple’s ambitions in AI, and recent positive revenue results from Foxconn bolster his conviction. With Foxconn reporting a notable 22% revenue increase in the fourth quarter, Munster views these developments as indicative of strong potential for Apple, expecting it to be a standout performer among large-cap stocks in the upcoming months.
