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AI Buildout Remains Strong as 2026 Brings a More Selective Market

The focus is shifting to cash‑generating leaders over broad AI exposure.

Overview

  • Early‑cycle supplier Comfort Systems reported a 15.5% sequential backlog increase, with its CEO describing no slowdown in data‑center opportunities.
  • Teradyne said semiconductor test sales beat expectations on AI chip demand and guided for a 25% sequential sales increase in the fourth quarter.
  • A Motley Fool survey found 90% of investors plan to buy or hold AI stocks in 2026, signaling ongoing retail bullishness toward the theme.
  • Warren Buffett’s Berkshire Hathaway ended Q3 with a record $381.7 billion in cash after 12 straight quarters of net stock selling, reflecting caution alongside elevated market metrics such as a 222% Buffett Indicator and a near 40 Shiller P/E.
  • CIO Peter Boockvar warned the AI trade is losing dominance this year, citing 2025’s data‑center‑heavy capex and calling for selectivity as winners and losers emerge.