Gene Munster's 11 Predictions For 2026: AI Trade Continues, Small‑Cap Tech Outperforms, This Magnificent Seven Stock Leads

Deepwater Asset Management's Gene Munster is back with a 10^th year of market predictions, sharing 11 things he thinks could come true in 2026, including a prediction on how several Magnificent Seven stocks will perform.

Gene Munster's 2026 Predictions

Fresh off of sharing why Apple Inc (NASDAQ:AAPL) could be one of the top Magnificent Seven stocks to watch in 2026, Munster shared a total of 11 predictions for 2026:

1. Nasdaq will end 2026 up 10% or more, driven by the AI trade: Munster said the AI trade is "still early" and 2026 could be the third year of a "5 year bull market." "The current bubble talk is actually constructive because it keeps expectations in check and lowers the risk of an actual bubble forming," Munster said.
   
2. Small cap tech will outperform the broad tech trade: Munster predicts that the Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) could outperform the Invesco QQQ Trust (NASDAQ:QQQ) in 2026.
   
3. Hyperscaler Capex growth will be up 50%: Munster highlights stocks like Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Microsoft Corporation (NASDAQ:MSFT) as companies that are increasing their Capex growth. Munster predicts that estimates on AI infrastructure building could be low.
   
4. Top private AI companies will stay on sidelines: While there may be a boom for IPOs in 2026, Munster predicts that top private AI-related companies like Databricks, Cursor, OpenAI, xAI and Anduril will stay private next year. "This is a positive sign for the AI trade given its unlikely the market peaks until these companies have gone public."
   
5. Apple to launch new Siri before April 30, 2026: Munster predicts Apple will launch a new, well-received Siri next year.
   
6. Tim Cook remains Apple CEO: With reports of Apple working on a succession plan for CEO Tim Cook, Munster remains confident that Cook keeps the top role through "at least" the end of 2027.
   
7. Apple top-performing Magnificent Seven stock in first six months of 2026: Munster recently shared reasons why he thinks Apple could be one of the top performing stocks in the first half of the year, with records expected thanks to the iPhone 17 and growing optimism thanks to the new Siri, which could come in April.
   
8. Alphabet top performing Magnificent 7 stock in 2026: While Munster sees Apple having a strong first six months in 2026, it is Alphabet that the investor predicts will be the top performing Magnificent Seven stock when 2026 is over. "Google is in the strongest position when it comes to a fully integrated AI stack." Munster says Alphabet's Gemini is a leading model that is seeing rapid expansion.
   
9. Tesla will have fully autonomous Robotaxi operations in five cities: Munster predicts that Tesla Inc (NASDAQ:TSLA) will have fully autonomous Robotaxi operations in five cities without a safety driver. Munster said they could launch Robotaxis in eight to 10 cities by the end of the year, with the majority coming without a safety driver.
   
10. Tesla misses delivery expectations: In another Tesla-related prediction for 2026, Munster predicts the electric vehicle company will report 2026 deliveries that are flat to up 5% from 2024. This compares to a Street estimate of 16% year-over-year growth from 2025, a year that saw deliveries down an estimated 7%. Still, Munger says the bull case for the stock is "FSD, Robotaxi and Optimus."
    
11. Waymo does one million weekly paid rides by end of 2026: Munster predicts that the Alphabet-owned self-driving vehicle company will hit new milestones in 2026.

Read Also: Gene Munster Predicts Tesla Deliveries Will Miss Expectations Next Year, Says Waymo To Hit 1 Million Rides Per Week Mark

Munster's 2025 Predictions

Of the 10 predictions made by Munster at the start of 2025, the investor awards himself 4.5 points for being right on several items.

Munster's predictions that came true include two 10% pullbacks for the Nasdaq, Apple and Tesla receiving tariff waivers, the IPO market accelerating to more than 250 listings and 2025 being the year of custom silicon.

For the item of TikTok being sold, Munster awards himself a half point as the U.S. has approved a sale. The deal currently remains in limbo.

Items that were missed:

• Bitcoin hitting $150,000
• The Russell 2000 outperforming the S&P 500
• Uber stock and Lyft stock underperforming the Nasdaq
• Tesla selling a $35,000 vehicle and gaining EV market share in the U.S.

Many analysts and investors will share their 2026 predictions in the final month of the year. A track record of sharing predictions for 10 years, along with being right on nearly half of the 2025 predictions, could make Munster's picks closely followed for the tech sector.

Read Next:

• Apple Earnings In Focus After Streaming Price Increase: Gene Munster Says This ‘Will Be Apple’s Growth Playbook’

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