Lukewarm AI Plays Can Catch Up in 2026

"Undoubtedly, there's still a lot of nerves out there over the latest wave of volatility, which may very well be the start of a painful, drawn-out move lower. As to whether we're in an AI bubble, though, remains a mystery. It'll probably be the big question going into the new year. With a recent wave of relief powering hard-hit AI stocks higher in the last few sessions, it seems like AI fears might be in an even bigger bubble than the AI stocks themselves."

"Either way, there's no denying that there are questionable valuation metrics on more than a handful of AI innovators. In short, we're closing off a great year with AI stocks and gold (as well as silver) on a high note, though things do seem to feel "toppy," even though recent volatility has been shrugged off with the bull back in the driver's seat. At this juncture, I think it's a bit lazy to dismiss anything involved in the AI space as being a bubble."

"You really don't have to look far for decent valuations across the stack. Whether you're interested in a "pick and shovels" kind of play with the GPU makers, or if you're more into the data center buildout, there are still somewhat reasonable prices of entry to be had, especially with the names that are still down a great deal from their prior highs."

AI stocks experienced a cooldown in the final quarter of 2025 amid renewed volatility and relief-driven rebounds. Uncertainty persists over whether AI equities constitute a bubble, while investor fears may be overstated compared with stock prices. Questionable valuation metrics exist across numerous AI innovators, yet attractive entry points persist within infrastructure segments such as GPU suppliers and data-center builders. Some leading big-tech companies represent potential bargains as they invest in proprietary AI chips and position to monetize AI through productization and hyper-personalization. Precious metals like gold and silver also finished the year strongly alongside AI equities.

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