AI Hype Meets Reality: Tech Stocks Brace for 2026 Challenges & Opportunities

• The 2025 AI rally sparked bubble fears; 2026 will focus on "proof of AI" and return on investment.
• Neocloud providers like Oracle Corp. face scrutiny over OpenAI's profitability and massive spending, impacting their stock.
• "Boring tech" such as memory chips and hard disk drives (Sandisk Corp., Western Digital Corp.) outperformed in 2025, a trend expected to continue.
• Software-as-a-service (SaaS) companies like ServiceNow Inc. and Adobe Inc. slumped due to fears of AI disruption.
• High-valuation stocks like Palantir Technologies Inc. and Tesla Inc. continued strong performance, driven by growth potential.

Why It Matters: 2026 will test AI's true ROI, shifting focus from hype to proven profitability in tech.