Wall Street remains bullish on AI, but the investment director of a $12 billion company believes investors need to be careful not to place all their hopes in the technology.
Peter Boockvar, chief investment officer at OnePoint BFG Wealth Partners, believes that even though AI trading has brought significant gains to the market in 2025, there are significant opportunities outside of AI trading.
Many of the technology sector's most powerful players are stumbling out of the gate in 2026, including Nvidia, Meta Platforms, and Microsoft. Boockvar said the industry's growth to date has not been sustainable and its days of dominance are numbered.
In his view, AI trading will not function as the market-moving force that investors have come to recognize in recent years. There are still opportunities for growth, but choices become more important.
“Investors need to understand that there are many other parts of the market that could do well right now, rather than just relying blindly on AI technology trading as a leadership group.”
The chief information officer said on CNBC that he believes market trends are slowly turning against prominent AI stocks. In his view, the market is showing signs of fatigue that some investors may be ignoring.
“I think that in 2026, AI technology trade will lose some momentum in terms of its advantages,” he said. “We saw the market react to the Nvidia report a few months ago. We saw the market punish Meta for its overspending.”
Boockvar pointed to the struggles of other top AI companies like Oracle, whose lackluster third-quarter results raised concerns about excessive AI spending, and also warned about Coreweave, which soared 90% in 2025 but still raises consistent concerns about excessive debt and a lack of potential profitability.
“I think we're getting to a point where the whole deal is becoming more differentiated and investors are realizing that there are going to be winners and there are going to be losers,” Boockvar added.
As part of this year's bearish thesis, Boockvar highlighted a surge in capital spending in 2025, arguing that companies should diversify their spending beyond data centers.
“All of the increase in capital spending in 2025 will be due to data center construction,” he said. “We hope that in 2026, with tax incentives for immediate spending, other areas of the economy will be able to pick up the baton.”
