Daybreak Holiday: Big Tech Outlook with Dan Ives and Gene Munster

In this special New Year's Day edition, the focus is on the outlook for big tech as we enter 2026. Nathan Hager hosts Dan Ives and Gene Munster, who discuss the bullish sentiment surrounding technology stocks driven by AI. They reflect on the experiences of 2025 and anticipate a continued upward trajectory in the tech market despite possible volatility. Both analysts expect significant market activity, particularly from AI-related sectors.

The conversation shifts to the role of artificial intelligence in shaping market expectations and driving valuations. Gene and Dan emphasize that AI is at the forefront of tech investment, with both analysts optimistic about its long-term impact. They highlight companies like NVIDIA, which continue to see positive growth prospects, even amidst concerns about market saturation.

The analysts discuss the Magnificent Seven (Mag 7) stocks and their performance relative to smaller tech companies. Gene suggests that while Mag 7 will continue to yield returns, certain small-cap stocks may outperform them in 2026. The implications of rising AI costs and competition from new technologies are addressed, with both guests urging investors to consider the broader landscape.

Addressing critics' concerns over tech valuations, the analysts explain that current valuations are not excessive when compared to historical standards, especially given the growth potential of AI technologies. They note that investors are looking towards long-term profitability and sustainability for major players, even as some firms face short-term challenges.