The S&P 500 climbed another 0.6% on Tuesday to close at 6,944.82, extending its impressive start to 2026 as investor appetite for artificial intelligence stocks shows no signs of waning. The index has now gained approximately 1.5% in the first week of trading, putting the widely-followed benchmark tantalizingly close to the psychologically significant 7,000 milestone.

Fueling the rally is extraordinary enthusiasm for AI-related investments. A new survey from a major investment research firm found that 90% of investors plan to own AI stocks at some point in 2026—an unprecedented level of consensus around a single investment theme. The finding underscores both the opportunity and the potential risks of a market increasingly concentrated around artificial intelligence.

The AI Consensus Trade

When asked which specific AI stocks they intended to own, investors overwhelmingly favored the sector's established leaders. Nvidia, whose graphics processing units power the majority of AI training infrastructure, topped the list with 67% of respondents expressing purchase intent. Broadcom, which has emerged as a critical supplier of custom AI chips to hyperscale cloud providers, came second at 52%.

"Nvidia and Broadcom are two top AI stocks to own in 2026 and beyond. The investment case is straightforward: AI infrastructure spending is still in early innings, and these companies capture the lion's share of that spend."

— Senior technology analyst at a major investment research firm

Other frequently mentioned names included Microsoft, Alphabet, Amazon, and Meta—the "Magnificent Seven" minus Apple and Tesla—which together account for roughly 30% of the S&P 500's market capitalization. The concentration reflects both the genuine earnings power of these companies and the momentum-driven nature of current market dynamics.

Top AI stock purchase intentions for 2026:

  • Nvidia (NVDA): 67% of investors plan to buy
  • Broadcom (AVGO): 52% of investors plan to buy
  • Microsoft (MSFT): 48% of investors plan to buy
  • Alphabet (GOOGL): 41% of investors plan to buy
  • Amazon (AMZN): 38% of investors plan to buy

Market Breadth Improves

While AI stocks continue to drive headlines and performance, Tuesday's trading offered encouraging signs of broadening participation. The equal-weighted S&P 500, which gives every stock the same influence regardless of market cap, outperformed its cap-weighted counterpart for the second consecutive session.

Small-cap stocks also participated in the rally, with the Russell 2000 index advancing 0.4% to 2,561. The "January Effect"—the historical tendency for smaller stocks to outperform in the new year—appears to be materializing as investors rotate into areas of the market that lagged in 2025.

Healthcare stocks emerged as an unexpected leader, with the sector posting broad-based gains following positive clinical trial data from several companies. The combination of attractive valuations and defensive characteristics is drawing investor interest as the earnings season approaches.

Sector Performance Tuesday

Technology and communication services led gains, but most sectors finished in positive territory:

  • Technology: +0.8%
  • Communication Services: +0.7%
  • Healthcare: +0.6%
  • Financials: +0.5%
  • Industrials: +0.4%
  • Consumer Discretionary: +0.2%
  • Energy: -0.3% (only declining sector)

The Path to 7,000

With the S&P 500 now less than 1% from 7,000, traders are debating whether the round number will act as resistance or merely a speed bump. Historically, the index has often paused at psychological milestones before eventually breaking through.

Bulls point to several supportive factors: earnings estimates remain robust, economic data continues to surprise to the upside, and the Federal Reserve appears content to maintain its current policy stance. The upcoming Q4 earnings season, which begins in earnest next week with bank reports, could provide the catalyst for a breakout if results exceed expectations.

Bears counter that valuations have become stretched, with the S&P 500 trading at roughly 22 times forward earnings—well above historical averages. The concentration of gains in a handful of mega-cap stocks creates vulnerability if any of those companies stumble. And while AI enthusiasm is understandable, the consensus nature of the trade raises contrarian concerns.

Nvidia's Jensen Huang Praises Tesla

In an intriguing cross-sector development, Nvidia CEO Jensen Huang praised Tesla's Full Self-Driving technology during a CES interview, calling it "state-of-the-art" despite Tesla not using Nvidia chips for its autonomous system. The comments highlighted the complexification of competitive dynamics in the AI chip space.

Tesla shares fell 4.2% on Tuesday despite the endorsement, as investors continued to digest the company's disappointing Q4 delivery numbers released last week. The electric vehicle maker reported deliveries down 16% year-over-year, though the stock remains near all-time highs as investors focus on robotaxi potential rather than near-term fundamentals.

Investment Considerations

For investors contemplating their 2026 strategy, the survey findings present a dilemma. On one hand, the unanimous enthusiasm for AI suggests the theme still has substantial momentum behind it. On the other, crowded trades historically underperform once the consensus becomes too uniform.

A balanced approach might involve maintaining exposure to leading AI beneficiaries while diversifying into areas of the market that have been overlooked. Value stocks, dividend payers, and international equities all trade at meaningful discounts to growth-oriented U.S. tech and could provide portfolio ballast if the AI trade falters.

As the S&P 500 approaches 7,000, the market's message is clear: investors believe in the AI transformation and are willing to pay for participation. Whether that confidence proves justified—or marks another instance of irrational exuberance—will be one of 2026's defining financial narratives.