Why Wall Street isn’t hopping off the AI bubble just yet

Data: Financial Modeling Prep ; Chart: Axios Visuals Wall Street strategists busted into 2026 overwhelmingly bullish , with one big caveat: AI had to deliver measurable returns this year. Why it matters: Two weeks in, investors are getting their wish, as Alphabet is lending its AI horsepower to several companies, while much of its risk is in the rearview. What they’re saying: Having real world, tangible applications for AI is a “very big deal,” Trevor Slaven, global head of asset allocation at Barings, told Axios.

Slaven thinks the market could rally significantly (again) this year, but there will be volatility along the way. Continued questions about an AI bubble could weigh on the tech sector, and mixed policy from Washington could cause broader volatility even if stocks continue to grin