Where to Invest in AI in 2026: A Guide for Advisors

As the global economy continues to grapple with the implications of artificial intelligence, one question has become increasingly prominent in conversations between clients and their advisors: where should I invest in AI? The assumption underlying this inquiry is that investing in AI is a novel and complex challenge, requiring specialized knowledge and expertise. However, a closer examination of recent trends reveals that the reality may be far more straightforward.

A panel discussion at the Future Proof conference shed light on the inner workings of the AI investment ecosystem. Three experts – David Wright, Joe Wilson, and Gina Sanchez – offered their insights on AI stocks, portfolio construction, and the opportunities ahead for 2026. The discussion highlighted some concerning trends, particularly in hyperscalers’ Capex spending.

The four largest hyperscalers – Alphabet, Amazon, Microsoft, and Meta – are projected to spend $650 billion on AI capex this year alone. This figure is expected to triple within three years, with some predictions suggesting it could reach a staggering $1 trillion. However, Wilson’s comments about Alphabet’s unique position in the market offer a more nuanced perspective. As the only company that owns its own chips, large language model, cloud infrastructure, and proprietary data, Alphabet is indeed a behemoth in the AI space.

However, this concentration of power also raises questions about potential risks and vulnerabilities. Moreover, Wilson noted that most investors already have significant exposure to AI through broad index funds. This means that the real challenge for advisors lies not in identifying new AI opportunities but rather in navigating the nuances of existing portfolios and avoiding overallocation.

One area where advisors can add value is by identifying specific sub-themes within the broader AI ecosystem that are underweight or overlooked. For instance, Sanchez highlighted the AI energy trade as an often-overlooked play driven by strained electrical grids. While it may seem counterintuitive to consider investing in energy companies as part of an AI-focused portfolio, this sub-theme is precisely where advisors can help their clients reap the benefits.

Ultimately, the AI investment narrative has become mired in hype and speculation. Advisors would do well to temper their clients’ expectations and focus on providing actionable advice rather than chasing trendy investments. As the AI landscape continues to evolve at a breakneck pace, one thing is clear: the real challenge lies not in predicting the future but in navigating the complexities of the present.

Advisors should take a step back and reassess their approach to AI investing. Rather than chasing after the latest AI fad or pouring money into hyperscalers’ Capex spending, they should focus on providing nuanced, expert advice that addresses the unique needs and goals of each client. By doing so, they can help their clients ride the waves of change without getting caught up in the hype.

In fact, the opportunity for advisors lies not in adding generic AI exposure but rather in identifying specific sub-themes and opportunities that can drive long-term growth. This requires a deep understanding of the client’s goals and risk tolerance, as well as the ability to navigate complex market trends. By taking this approach, advisors can help their clients succeed in the rapidly evolving world of AI investing.