Will 2026 mark the big reset for Big Tech?

As 2025 comes to a close, the AI bubble appears to have endured. However, rising concerns, particularly regarding valuations, loom large. Have markets become overly optimistic about the impacts of AI? A reality check may be on the horizon for 2026. Investors might soon demand answers about whether new technologies genuinely enhance efficiency and profitability. This scrutiny primarily targets major tech firms like Google and Meta, who need to demonstrate how their AI investments translate into revenue. Amazon and Microsoft face similar pressures due to their substantial capital expenditures aimed at maintaining competitiveness. Both need to prove that increased productivity results in solid financial returns. Nvidia also reigns as a prominent player in the AI space, but lofty expectations could backfire if they do not meet investor demands, especially with potential risks from the Chinese market. If successful, Nvidia could possibly achieve a market cap of $5 trillion, or even $10 trillion in the long run.