‘FOLLOW THE MONEY’: Expert maps where billions are going in 2026

Key Concepts

Artificial Intelligence (AI) Infrastructure: Significant investment in hardware, software, and data centers to support AI development and deployment.
AI Ecosystem: The interconnected network of companies and technologies involved in the AI revolution, extending beyond just chip manufacturing.
Energy Sweet Spot: The optimal oil price range ($65-$85) that encourages exploration, production, and profitability without stifling economic growth.
Small-Cap Biotech: Investment opportunities in smaller biotechnology companies driving healthcare innovation, often acquired by larger pharmaceutical firms.
Financials (Private Equity): Focus on companies like Blackstone and Apollo benefiting from increased deal-making and higher valuations.

Market Overview & Initial Conditions

The broadcast began with a mixed market outlook: the Dow was down 74 points, while the NASDAQ was up 34. However, all three major indices had closed higher the previous day, with the Dow reaching an all-time high. Strong performance was noted in the financial and energy sectors, with the Dow experiencing a significant surge of almost 600 points earlier in the day. NVIDIA stock was down 9% since hitting a record high in October, despite previously nearing a $5 trillion market value.

NVIDIA & the AI Revolution

A central theme was NVIDIA’s unveiling of its next-generation chip and AI platform. Jensen Huang, NVIDIA’s CEO, stated that demand for AI chips remains strong, with the Rubin data center processors scheduled for deployment in the second half of the year. NVIDIA also introduced AI tools for robotics and autonomous vehicles, aiming for autonomous vehicle deployment by 2027. Huang highlighted strong interest in H200 chips from China and a broader push for AI adoption across various industries.

Kevin Mahn, Asset Management President and CIO, emphasized that following the money in 2026 means tracking the billions of dollars being spent on AI infrastructure. He cited Jensen Huang’s prediction of $3 to $4 trillion being spent on AI infrastructure by the end of the decade. Mahn stressed the importance of a diversified portfolio encompassing the entire AI ecosystem, not just chip manufacturers, to benefit from the AI revolution.

Jensen Huang, in a previous interview (clip shown during the broadcast), explained that the recent breakthroughs in AI are “effective, useful, and generating really good results for users,” impacting industries from healthcare to manufacturing. He acknowledged the question of justifying a $5 trillion market value but pointed to the broader scope of NVIDIA’s involvement beyond just chips, including data centers, robotics, and autonomous vehicles.

Energy Sector Analysis

The discussion shifted to the energy sector, specifically the situation in Venezuela. President Trump’s stance on maximizing US energy production, including potentially assisting in rebuilding Venezuela’s oil infrastructure, was highlighted. Chevron, the only American company currently operating in Venezuela, is expected to benefit significantly from this potential development. Crude oil was trading at $58-$51, with limited movement despite the capture of Maduro.

Mahn stated that a stable oil price between $50-$70, ideally around $60, is beneficial for exploration, production, and profitability. He cautioned against prices being too low (leading to production cuts) or too high (constraining economic growth). He also emphasized the importance of the US controlling its energy future, rather than relying on OPEC, Russia, or other global players. He predicted that in five years, the US will have increased oil and natural gas production, alongside significant growth in nuclear and other energy sources, positioning the US as a leader in robotics, AI, and manufacturing.

Investment Strategies for 2026

Mahn outlined his investment recommendations for 2026:

AI Infrastructure: Continuing investment in the foundational elements supporting AI development.
Small-Cap Biotech: Identifying and investing in innovative smaller biotechnology companies, anticipating acquisitions by larger pharmaceutical firms.
Financials (Private Equity): Focusing on private equity firms like Blackstone and Apollo, anticipating increased deal-making and higher valuations driven by financing for data centers and the AI trade. He specifically highlighted Blackstone as a good entry point.

He expressed overall bullishness for the economic outlook, anticipating a potentially strong year despite possible market fluctuations.

Military Modernization & Defense Spending

Mahn also briefly mentioned the importance of upgrading and modernizing military capabilities, citing recent military activities. He noted NATO’s commitment to spend 5% of their GDP on defense.

Notable Quotes

Jensen Huang: “Artificial intelligence in the last year made some humongous breakthroughs, it is now effective. It’s useful. It’s generating really good results for users.”
Kevin Mahn: “When I say follow the money, I don't necessarily mean follow the flow of funds but follow where the billions of dollars of money is being spent.”
Kevin Mahn: “The risk is not making the investment because competitors will pass you buy.”
Kevin Mahn: “Energy is about power… It’s great for the U.S. and it’s great for the global economy, it’s great for Western civilization.”

Technical Terms

GDP (Gross Domestic Product): The total monetary or market value of all final goods and services produced within a country’s borders in a specific time period.
Data Centers: Facilities used to house computer systems and associated components, such as telecommunications and storage systems. Crucial for AI infrastructure.
Autonomous Vehicles: Vehicles capable of sensing their environment and navigating without human input.
Market Value (Market Capitalization): The total value of a company's outstanding shares of stock.
OPEC (Organization of the Petroleum Exporting Countries): An intergovernmental organization of 13 nations that coordinate petroleum policies.

Logical Connections

The discussion flowed logically from a general market overview to a deep dive into NVIDIA and the AI revolution. The energy sector analysis was presented as a related factor influencing the broader economic landscape. Finally, specific investment strategies were offered as actionable steps to capitalize on the identified trends. The connection between AI infrastructure, energy needs, and the potential for US manufacturing leadership was consistently emphasized.

Conclusion

The broadcast presented a bullish outlook for 2026, driven by the continued growth of AI, a stable energy market, and increased activity in the financial sector. The key takeaway is the need to invest strategically across the entire AI ecosystem, recognizing that the return on investment in AI infrastructure may take years to materialize. A diversified portfolio, including small-cap biotech and private equity firms, is recommended to maximize potential gains. The emphasis on US energy independence and military modernization further supports the optimistic economic forecast.