Why technology may not be the only sector of note in 2026 (even if it feels like it)

Russ Mould

2 September 2026

Fourteen of the world’s twenty biggest companies by stock market valuation are tech stocks, active in AI, or both
Eighteen of the top twenty performers among the world’s 100 largest firms by stock market value are tech stocks
However, none of those eighteen are the heavy spending hyperscalers
The further you get from spending money on AI to receiving it, the better the stock market performance becomes
Only twenty-four of the 100 biggest names by value are down in 2026 to date, but they include Meta, Netflix, Tesla and Oracle

“The FTSE All-World index is up by a healthy 12.6% in 2026 to date and shares in fifty-seven of the world’s 100 biggest companies by stock market capitalisation have done better than that, in what looks like a powerful affirmation of momentum investing, especially as technology stocks dominate the top of the share price performance tables,” says AJ Bell investment director Russ Mould.

“Even so, technology and AI-related stocks are not a one-way ticket to portfolio gains, looking at how Meta, Netflix, Tesla and Oracle are all among the list of stocks to serve up capital losses to shareholders so far this year, and one trend to note is how it is the enablers of AI, rather than the big spenders on and developers of the technology, that seem to be doing best.

“Given the break-neck race to forge and maintain a lead in AI, through the development of large language models (LLMs) such as Anthropic’s Claude, OpenAI’s ChatGPT, Microsoft’s MAI, SpaceX’s Grok, Alphabet’s Gemini and Amazon’s Nova, let alone DeepSeek, Kimi and Qwen from China, investors remain fascinated by who turns out to be the ultimate winner, or winners.

“The race to invest remains as heated as ever, and companies such as Microsoft, Alphabet and Amazon are also looking to cash in via their cloud-hosting and data centre operations, although the result is huge near-term investment in search of long-term returns.

Source: Company accounts, Marketscreener, analysts’ consensus forecasts for Alphabet, Amazon, Meta Platforms, Microsoft and Oracle

“The result is a phenomenal surge in capital expenditure, and a concomitant decline in cash flow.

Source: Company accounts for Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla

“This spending boom is underpinning corporate profits growth, which is running way above trend levels in the USA, for example, and potentially GDP growth, too, given the sums involved.

“That in turn is helping to drive share prices and headline stock indices higher. In 2026 to date, the FTSE All-World index is up nicely and on course for a fourth consecutive year of gains, with barely a flicker of volatility for good measure.

“Even 2025’s spring wobble over America’s Liberation Day tariffs and 2026’s stumble when a fresh war broke out in the Middle East and oil prices spiked did not last long.

Source: LSEG Refinitiv data

“The result is an overwhelming dominance of tech and AI-related stocks. Fourteen of the world’s twenty biggest companies by stock market valuation are tech stocks, active in AI, or both.

“The list of the 100 biggest firms features thirty firms from the Information Technology sector, easily the largest figure, and that excludes names such as Alphabet, SpaceX, Meta and Tencent, with their Communications Services classification and Amazon, Tesla and Alibaba, who fall under the Consumer Discretionary bracket.

“The next biggest sector in the top 100 firms by stock market valuation is Financials, at twenty.

	Company	Sector	Stock market capitalisation ($ bn)
1	NVIDIA	Information Technology	5,251
2	Apple	Information Technology	4,745
3	Alphabet	Communications Services	4,081
4	Microsoft	Information Technology	3,720
5	Amazon	Consumer Discretionary	2,750
6	TSMC	Information Technology	1,997
7	SpaceX	Communications Services	1,930
8	Broadcom	Information Technology	1,759
9	Aramco	Energy	1,687
10	Meta Platforms	Communications Services	1,474
11	Tesla	Consumer Discretionary	1,406
12	Samsung Electronics	Information Technology	1,208
13	Berkshire Hathaway	Financials	1,075
14	Micron Technology	Information Technology	1,054
15	Eli Lilly	Healthcare	1,034
16	JPMorgan Chase	Financials	944
17	SK Hynix	Information Technology	899
18	Walmart	Consumer Discretionary	840
19	AMD	Information Technology	750
20	Visa	Financials	684
21	ExxonMobil	Energy	677
22	Johnson & Johnson	Consumer Staples	654
23	ASML	Information Technology	639
24	Mastercard	Financials	509
25	Tencent	Communications Services	507
26	CXMT	Information Technology	506
27	Intel	Information Technology	467
28	Abbvie	Healthcare	459
29	Bank of America	Financials	433
30	Cisco	Information Technology	433
31	Palantir	Information Technology	432
32	CostCo	Consumer Discretionary	417
33	Chevron	Energy	414
34	ICBC	Financials	412
35	Oracle	Information Technology	407
36	Coca-Cola	Consumer Staples	379
37	Merck	Healthcare	370
38	LAM Research	Information Technology	363
39	Agricultural Bank of China	Financials	360
40	Caterpillar	Industrials	358
41	UnitedHealth	Healthcare	356
42	HSBC	Financials	356
43	Applied Materials	Information Technology	351
44	GE Aerospace	Industrials	344
45	Roche	Healthcare	343
46	Procter & Gamble	Consumer Discretionary	340
47	Netflix	Communications Services	336
48	Morgan Stanley	Financials	331
49	China Construction Bank	Financials	329
50	Delta Corporation	Consumer Staples	325
51	Home Depot	Consumer Discretionary	319
52	Novartis	Healthcare	307
53	Goldman Sachs	Financials	304
54	Petrochina	Energy	303
55	Bank of China	Financials	300
56	Palo Alto Networks	Information Technology	295
57	Philip Morris	Consumer Staples	292
58	Royal Bank of Canada	Financials	282
59	RTX	Industrials	277
60	Dell Technologies	Information Technology	275
61	Alibaba	Consumer Discretionary	273
62	Wells Fargo	Financials	263
63	Mitsubishi UFJ Financial	Financials	260
64	Shell	Energy	257
65	LVMH	Consumer Discretionary	254
66	AstraZeneca	Healthcare	251
67	ARM	Information Technology	251
68	CALT	Information Technology	250
69	Nestle	Consumer Staples	249
70	Siemens	Industrials	247
71	SAP	Information Technology	247
72	BHP	Materials	243
73	Kweichow Moutai	Consumer Discretionary	242
74	Toyota Motor	Industrials	240
75	GE Vernova	Utilities	239
76	Arista Networks	Information Technology	239
77	Amgen	Healthcare	237
78	L'Oreal	Consumer Staples	234
79	Texas Instruments	Information Technology	231
80	Sandisk	Information Technology	225
81	Linde	Industrials	224
82	China Mobile	Communications Services	224
83	KLA Corp.	Information Technology	223
84	Citigroup	Financials	222
85	Thermo Fisher Scientific	Healthcare	222
86	Crowdstrike	Information Technology	220
87	International Holding	Consumer Discretionary	219
88	American Express	Financials	219
89	IBM	Information Technology	218
90	Mediatek	Information Technology	217
91	Salesforce	Information Technology	212
92	Banco Santander	Financials	211
93	Verizon Communications	Communications Services	209
94	Inditex	Consumer Discretionary	208
95	Novo Nordisk	Healthcare	202
96	Amphenol	Industrials	201
97	TotalEnergies	Energy	200
98	Toronto-Dominion Bank	Financials	197
99	Allianz	Financials	196
100	T-Mobile US	Communications Services	195

Source: Marketscreener, LSEG Refinitiv data

“Tech and AI names also dominate the leaderboard when it comes to share price performance in 2026 to date, but it is here that the picture starts to become more nuanced, because some very big tech and AI names are among the laggards too.

“Only twenty four of the world’s 100 biggest companies by price tag leave their shareholders sitting on a book loss so far this year, but they include Oracle, Meta and Tesla, and it does look as if shares in the heaviest spenders on AI development are doing an awful lot less well than those firms who are receiving that cash and, in effect, providing the picks and shovels that facilitate AI – anything from earth-moving equipment to memory chips to semiconductor production equipment.

“This will be something for investors to ponder as they assess the future trajectory of shares in SpaceX and also the putative initial public offerings by both Anthropic and OpenAI.

“Narrative will take a share price so far, but in the end, it is profits and cash flow that matter, and valuation – the price or multiples paid to access those profits and cash flow – that is the ultimate arbiter of investment return.

	Company	Sector	Stock market capitalisation ($ billion)	Share price change, 2026 to date
1	CXMT*	Information Technology	506	552.4%
2	Sandisk	Information Technology	225	547.4%
3	Dell Technologies	Information Technology	275	237.6%
4	Micron Technology	Information Technology	1,054	227.1%
5	Mediatek	Information Technology	217	201.8%
6	SK Hynix	Information Technology	899	160.1%
7	Intel	Information Technology	467	141.1%
8	Samsung Electronics	Information Technology	1,208	117.7%
9	ARM	Information Technology	251	114.8%
10	AMD	Information Technology	750	114.6%
11	Palo Alto Networks	Information Technology	295	96.6%
12	Crowdstrike	Information Technology	220	83.5%
13	Applied Materials	Information Technology	351	71.9%
14	LAM Research	Information Technology	363	69.5%
15	TSMC	Information Technology	1,997	57.4%
16	ASML	Information Technology	639	55.3%
17	Delta Corporation	Consumer Staples	325	52.7%
18	Mitsubishi UFJ Financial	Financials	260	47.8%
19	Texas Instruments	Information Technology	231	46.0%
20	Arista Networks	Information Technology	239	44.4%
21	Cisco	Information Technology	433	42.5%
22	Merck	Healthcare	370	42.4%
23	BHP	Materials	243	42.1%
24	KLA Corp.	Information Technology	223	40.6%
25	TotalEnergies	Energy	200	39.6%
26	Chevron	Energy	414	38.5%
27	GE Vernova	Utilities	239	37.5%
28	ExxonMobil	Energy	677	36.8%
29	Caterpillar	Industrials	358	36.0%
30	Bank of China	Financials	300	34.5%
31	Amgen	Healthcare	237	33.9%
32	Johnson & Johnson	Consumer Staples	654	31.0%
33	HSBC	Financials	356	30.6%
34	Toronto-Dominion Bank	Financials	197	28.5%
35	Coca-Cola	Consumer Staples	379	25.9%
36	China Construction Bank	Financials	329	25.8%
37	Shell	Energy	257	25.4%
38	Banco Santander	Financials	211	25.3%
39	Verizon Communications	Communications Services	209	23.5%
40	ICBC	Financials	412	22.3%
41	Royal Bank of Canada	Financials	282	21.0%
42	Amphenol	Industrials	201	20.8%
43	Petrochina	Energy	303	20.5%
44	UnitedHealth	Healthcare	356	20.1%
45	Apple	Information Technology	4,745	19.6%
46	Novartis	Healthcare	307	19.2%
47	Morgan Stanley	Financials	331	18.9%
48	Philip Morris	Consumer Staples	292	16.7%
49	NVIDIA	Information Technology	5,251	16.6%
50	Allianz	Financials	196	15.5%
51	Siemens	Industrials	247	14.5%
52	Linde	Industrials	224	14.2%
53	Goldman Sachs	Financials	304	14.1%
54	Agricultural Bank of China	Financials	360	13.8%
55	Abbvie	Healthcare	459	13.8%
56	Citigroup	Financials	222	13.6%
57	Bank of America	Financials	433	12.7%
58	RTX	Industrials	277	11.9%
59	Amazon	Consumer Discretionary	2,750	10.4%
60	JPMorgan Chase	Financials	944	10.2%
61	Aramco	Energy	1,687	9.4%
62	CostCo	Consumer Discretionary	417	9.0%
63	Eli Lilly	Healthcare	1,034	7.9%
64	GE Aerospace	Industrials	344	7.5%
65	Alphabet	Communications Services	4,081	7.0%
66	Roche	Healthcare	343	7.0%
67	Broadcom	Information Technology	1,759	6.8%
68	Visa	Financials	684	6.3%
69	SpaceX**	Communications Services	1,930	5.4%
70	L'Oreal	Consumer Staples	234	4.8%
71	Thermo Fisher Scientific	Healthcare	222	3.6%
72	Microsoft	Information Technology	3,720	3.6%
73	Procter & Gamble	Consumer Discretionary	340	2.0%
74	Mastercard	Financials	509	1.8%
75	Palantir	Information Technology	432	1.2%
76	Inditex	Consumer Discretionary	208	0.4%
77	Berkshire Hathaway	Financials	1,075	(0.4%)
78	Nestle	Consumer Staples	249	(1.2%)
79	CALT	Information Technology	250	(2.5%)
80	Salesforce	Information Technology	212	(2.6%)
81	China Mobile	Communications Services	224	(2.7%)
82	Walmart	Consumer Discretionary	840	(4.9%)
83	Kweichow Moutai	Consumer Discretionary	242	(5.6%)
84	Wells Fargo	Financials	263	(6.6%)
85	Toyota Motor	Industrials	240	(6.6%)
86	Home Depot	Consumer Discretionary	319	(7.1%)
87	International Holding	Consumer Discretionary	219	(7.7%)
88	Novo Nordisk	Healthcare	202	(9.1%)
89	T-Mobile US	Communications Services	195	(10.3%)
90	Meta Platforms	Communications Services	1,474	(12.4%)
91	American Express	Financials	219	(12.4%)
92	SAP	Information Technology	247	(12.6%)
93	AstraZeneca	Healthcare	251	(13.2%)
94	Netflix	Communications Services	336	(13.8%)
95	Tesla	Consumer Discretionary	1,406	(20.8%)
96	IBM	Information Technology	218	(21.9%)
97	Alibaba	Consumer Discretionary	273	(23.0%)
98	Tencent	Communications Services	507	(26.8%)
99	Oracle	Information Technology	407	(27.5%)
100	LVMH	Consumer Discretionary	254	(32.1%)

	FTSE All World			12.6%

Source: Marketscreener, LSEG Refinitiv data. *CXMT since IPO on 27 July. ** SpaceX since IPO on 11 June. Data to the close on 1 September 2026.

“Prior episodes when hefty gains in headline indices have been led, and become reliant, upon a single investment theme and a narrow group of stocks have ended in volatility, or outright bear markets, not to mention swift rotation away to new sectors and themes.

“Examples include the so-called Go-Go years of the late 1960s in the USA, when the ‘onics and ‘tronics stocks took the market higher and then lower; the Nifty Fifty in the US in the early 1970s; technology, media and telecoms stocks worldwide in the late 1990s; and then banks and financials stocks in the early 2000s.

“It remains to be seen whether AI’s meteoric rise is followed by a similarly sharp fall from grace, but, as the now-retired Warren Buffett once put it, ‘Investors should remember that excitement and expenses are their enemies.’

“Valuation and cash flow should be investors’ ultimate guide, no matter how compelling a narrative is, and one person who may be watching with interest could be activist investor Carl Icahn, given his one-time acerbic observation that, ‘Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity.’”

Russ Mould

Investment Director

Russ Mould’s long experience of the capital markets began in 1991 when he became a Fund Manager at a leading provider of life insurance, pensions and asset management services. In 1993, he joined a prestigious investment bank, working as an Equity Analyst covering the technology sector for 12 years. Russ eventually joined Shares magazine in November 2005 as Technology Correspondent and became Editor of the magazine in July 2008. Following the acquisition of Shares' parent company, MSM Media, by AJ Bell Group, he was appointed as AJ Bell’s Investment Director in summer 2013.

Contact details

Mobile: 07710 356 331
Email: russ.mould@ajbell.co.uk