When investing, your capital is at risk. The value of investments can go down as well as up, and you may get back less than you put in. The content of this article is for information purposes only and does not constitute personal advice or a financial promotion.
TL;DR (9–5 Investor Summary)
What’s happening (snapshot): 2026 looks like a year of capacity building: compute, electricity, medicines, metals, and balance sheets.
Why it matters (real driver): The spend is broadening from “AI chips” into the inputs AI needs to exist at scale, especially power and grid equipment.
What the market is missing: AI is a supply chain. The bottleneck often sits one step earlier than the headline beneficiary.
Key risk to watch: Policy and pricing. Utility rate politics, drug reimbursement, and antitrust posture can change outcomes fast.
Investor lens (Buy / Hold / Watch):
Buy lens: Businesses selling capacity into visible demand (compute, grid buildout, chronic-disease therapies).
Hold lens: High-quality compounders that already trade like the future is guaranteed.
Watch lens: Themes where regulation and funding costs do most of the work.
2026 Investing Themes by Sector
Every era in the markets has its own catchphrase.
2007 had “housing never falls nationally.”
2021 had “it’s all digital now.”
2025 had “AI.”
These slogans are rarely wrong, but they usually don’t tell the whole story.
AI is here to stay. But 2026 is shaping up to be less about buzzwords and more about real spending. The push for more computing affects everything else: electricity, transformers, chips, cooling, copper, and the financing behind it all.
So, rather than seeing 2026 as one big trade, it’s better to look at where the money is actually going. Here are five sector themes that stand out when you follow the spending, not just the headlines.
1) Artificial Intelligence and Big Tech Infrastructure
AI is still at the heart of the story, but things have moved forward.
It used to be about what was possible. Now, it’s about how much can get done.
In 2026, most spending remains focused on the basics: GPUs, fast memory, networking, and building data centres. That’s why semiconductors and cloud infrastructure keep appearing in forecasts, not because they sound futuristic, but because companies are actually buying them.
What’s driving it
Hyperscaler capex and data-centre buildouts
The upgraded treadmill in computing and memory
Tech earnings momentum is staying stronger than the median sector
Where it tends to sit
Information Technology: semis, chip equipment, cloud infrastructure
Communication Services: platforms finding ways to monetise AI in ads, recommendations, and workflows
Examples people commonly use as signposts
$NVDA ( ▼ 0.04% ),
$AMD ( ▲ 1.62% ),
$ASML ( ▼ 0.67% ),
$GOOGL ( ▼ 0.16% ),
$MSFT ( ▼ 0.06% ),
$META ( ▲ 0.24% );
ETFs like $SOXX ( ▼ 0.58% ) and $XLK ( ▼ 0.5% ).
The useful nuance
The real question isn’t whether AI is big; it is.
The real question is, how is it being paid for?
A capital spending cycle paid for with real cash flow is different from one funded by optimism and cheap loans. In 2026, how these projects are funded matters just as much as the technology itself.
2) Power and Utilities: Data-Centre Energy Infrastructure
AI has a way of bringing new life to old industries.
Utilities aren’t usually a hot topic, but running lots of AI servers takes a huge and steady supply of electricity. The problem is that the grid often isn’t ready where servers are needed most.
That’s why “data-centre power” keeps coming up in 2026 forecasts. It’s not about excitement, it’s about limits.
What’s driving it
New data-centre load and interconnect demand
Transmission buildout and grid upgrades
A near-term reliance on practical generation sources while new capacity is built
Where it tends to sit
Utilities: regulated utilities and independent power producers
Industrials: turbines, transformers, switchgear, grid equipment
Energy value chain: natural gas logistics and infrastructure that feed generation
Examples people commonly cite
$OKLO ( ▲ 0.37% ),
$VST ( ▲ 1.13% ),
$NEE ( ▲ 0.46% ),
$DUK ( ▲ 0.9% ),
ETFs like $XLU ( ▲ 1.1% ).
The useful nuance
Utilities can grow by increasing their rate base, but politics also gets involved. When bills go up, regulators pay attention, and that can slow things down.
If AI is the main story, power sets the pace. It determines how fast things can move.
3) Healthcare and Biotech: Obesity Drugs and Rebuilding Pipelines
Healthcare in 2026 is moving in two directions simultaneously.
The first trend is the rise of GLP-1 drugs. Obesity and diabetes treatments are moving from breakthroughs to figuring out how to pay for them on a large scale. Price cuts, wider insurance coverage, and public payment rules will decide if these drugs stay niche or go mainstream.
The second trend is the biotech cycle. Big pharmaceutical companies are losing patents, while smaller biotech firms have new drugs in development. Deals happen when these two groups come together.
What’s driving it
Expanding adoption of metabolic drugs as access improves
Pipeline value and M&A logic as incumbents shop for growth
Demographics, because ageing is undefeated
Where it tends to sit
Pharma and biotech: cardiometabolic and oncology
Managed care: chronic disease management economics
Medical devices and diagnostics: monitoring and adjacent care
Examples people commonly use
$LLY ( ▲ 0.26% ),
$NVO ( ▼ 1.58% ),
$PFE ( ▼ 1.86% );
Broader healthcare via $XLV ( ▼ 0.26% ); GLP-1 themed funds exists too.
The useful nuance
In healthcare, science starts the process, but pricing keeps it going.
A great therapy with limited insurance coverage can have average sales, while a basic therapy with wide coverage can do very well. In 2026, how coverage works is just as important as the science.
4) Clean Energy Transition and Materials: The Metal Behind the Megawatt
Here’s a simple way to think about this theme:
Energy transition is not just “more solar.”
It’s about needing more materials.
More copper in grids. More aluminium. More nickel and lithium in storage. More industrial metals are embedded in everything built to electrify transport and power.
That’s why materials are part of clean-energy discussions. It’s not because mining is popular, but because the transition is physical, and these projects need a lot of metal.
What’s driving it
Renewables buildout and storage deployment
Grid expansion is linked to both electrification and data-centre demand
Subsidy frameworks that pull projects forward
Where it tends to sit
Materials and mining: copper, lithium, nickel, aluminium
Renewables and grid suppliers: developers and equipment makers
Industrials: batteries, components, installation capacity
Examples people commonly cite
$ALBEMARLE ( ▲ 0.58% ),
$GLNCY ( ▼ 0.44% ),
$BHP ( ▲ 0.73% ),
$FSLR ( ▼ 2.21% ),
$VWDRY ( ▲ 0.85% );
ETFs like $LIT ( ▼ 0.96% ), $TAN ( ▼ 3.16% ), $XLB ( ▼ 0.36% ), $REMX ( ▼ 1.49% ).
The useful nuance
Clean energy projects usually require a lot of upfront investment. When borrowing is cheap, more projects get built. When it’s expensive, fewer do.
5) Financials and Deal-Making
When people talk about financials in 2026, they usually mean one of two things:
They mean rates.
Or they mean deals.
Deal activity is a good sign of confidence. When CEOs prioritise growth over caution, bankers get busy, and capital markets become more active.
If regulations ease and borrowing gets easier, mergers, underwriting, and advisory work pick up. If rules get stricter or borrowing remains expensive, activity slows.
What’s driving it
Consolidation logic and corporate finance activity
Regulatory posture on antitrust and approvals
Rate expectations that change borrowing appetite
Where it tends to sit
Investment banks and brokerages: advisory and underwriting
Large banks: capital markets plus lending
Payments: tied more to economic volume than deals, but still part of the ecosystem
Examples people commonly cite
$JPM ( ▼ 0.24% ),
$GS ( ▼ 1.83% ),
$MS ( ▼ 1.26% );
ETFs like $XLF ( ▼ 0.84% ) and KBE.
The useful nuance
Mergers and acquisitions go in cycles, but regulation can make it feel like an all-or-nothing proposition. Stricter antitrust rules don’t just slow deals; they change which deals even get tried.
Two cross-currents that keep showing up
1) The push for diversification
When U.S. stocks get expensive, global diversification becomes a practical need, not just good manners. International markets don’t have to outperform the U.S.; they just need to behave differently at the right moments.
2) Hedges and alternatives play a supporting role
Gold and Bitcoin come up as diversifiers when people worry about market concentration or global risks. Sometimes they help, and sometimes they just give investors something to debate.
Final thought
Many discussions about 2026 will still start with AI, because that’s what people focus on.
But a more practical way to look at it is this: AI is the result, and the themes above are what make it possible.
Compute needs electricity.
Electricity needs grid hardware.
Grid hardware needs metals.
Healthcare needs pricing rules and pipelines.
Deals need confidence and regulators who are not looking for a reason to say no.
This isn’t a prediction, it’s a chain of dependencies.
Disclaimer: This publication is for general information and educational purposes only and should not be taken as investment advice. It does not take into account your individual circumstances or objectives. Nothing here constitutes a recommendation to buy, sell, or hold any investment. Past performance is not a reliable indicator of future results. Always do your own research or consult a qualified financial adviser before making investment decisions. Capital is at risk.
Markets move fast. Savvy investors spot trends early.
Every Monday, get my pre-market cheat sheet:
✅ What’s hot
✅ What’s fading
✅ Where smart money’s flowing
No hype, just data.
👉 Subscribe to stay ahead.