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Forget chatbots, here's where AI is really going to make strides in 2026.
In this episode of Stocks in Translation, The Futurum Group Daniel Newman joins host Jared Blikre and Yahoo Finance Senior Reporter Brooke DiPalma to break down where enterprise AI is really making money. Newman highlights top beneficiaries like Nvidia (NVDA), Salesforce (CRM), ServiceNow (NOW), Workday (WDAY), and IBM (IBM), and explains how AI is reshaping healthcare, defense, and SaaS, plus what investors should watch in 2026.
Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service.
This post was written by Lauren Pokedoff
Video Transcript
0:05 spk_0
Welcome to Stocks in Translation, Yahoo Finance's video podcast that cuts through the market mayhem, the noisy numbers, and the hyperbole to give you the information you need to make the right trade for your portfolio. I'm Jared Blicker, your host, and with me is my co-host, Yahoo Finance senior reporter, Brooke De Palma. She's here to connect the dots and to be that bridge between Wall Street and Main Street. And today we're gonna be talking about the tech trade and the future of AI. What are the hot themes of 2026 and where will we see leadership?Our phrase of the day, Enterprise AI. It's not all chatbots anymore, it's automation that saves time and money, which companies are gonna benefit the most from this insight. And on today's market show and tell, we will break down support and resistance, particularly as it relates to Intel.And this episode is brought to you by the number $1 trillion. Forget unicorns, we are now 1,000xing them. 2026 is gonna be likely the first year a $1 trillion company IPOs. Will it be OpenAI? Will it be SpaceX, or will it be both? And to help break all of this down for us, we are welcoming back Daniel Newman. He is CEO of Futurum Group.who's focused on how major tech shifts reshape businesses. He's also the author of multiple bestselling businesses and technology books, including Human Machine and Futureproof. He is a thought leader in tech, and we are excited to talk to you today. Dan, it's been about 9 months and a lot has happened that is, uh, a lot happens in tech over just 1 or 2 months.Nowadays, but set the table for us for 2026, please.
1:38 spk_1
Yeah, it's a great time. First of all, good to be back with you both. It's so exciting. In 2026, started off with an absolute bang. We had CES, you know, the C in CES used to stand for consumer, but I think it's the chip show now. We had the big announcements coming out from Nvidia and AMD, uh, next generation rack scale 2 ton.Uh, systems that are going to be going in and building the future of this AI revolution. And, you know, taking a step back, I mean, look, we're getting these cycles and, you know, 9 months, you said is a long time. Well, every 6 months now, we're basically seeing the next wave of upgrades. We're seeing multiple cycles a year. We're seeing this race. It's an absolute arms race between the world's largest, uh, hyperscalers to build.the future, and they're all competing. They're competing on talent, they're competing on technology, and they're competing on, of course, building services that the market wants. But 2026 is really being set up as the year of monetization of AI. All the bubble talk that sort of came out late in last year really came out because people are like, well, who's making money besides maybe Nvidia and TSMC? And the bottom line is,Anyone that's around this is seeing exponential productivity gains. They're seeing efficiency gains, but that hasn't necessarily translated to earnings gains yet for many companies besides the ones I just mentioned. This is gonna be the year that I think CEOs, boards are gonna be under pressure to say, hey, these AI investments are paying off, and it's gonna be something that we're gonna start to see sort of distributed. You could say a bigger breadth across different names, but those companies, those winners, losers are gonna be, are gonna be.themselves more this year, and it's gonna be up to CEOs to get on these earnings calls and really tell a story of where AI is changing the trajectory of their businesses.
3:17 spk_2
And Daniel, let's stick with that theme and get to our phrase of the day. The phrase of the day is enterprise AI, and that's AI that's built into everyday work like for customer service, coding, human resources, as well as finance. And it's about using company data and tools, less chatbot, wow, more automation that saves time and money, and it matters because this is where AI goes from hype.To really pay off. And if you want to know which companies can turn all this spending into real revenue, you have to watch where AI shows up in the actual workday, not just in a demo. So Dan, what do investors really need to know about enterprise AI and how is 2026 going to show usthat?
3:53 spk_1
Yeah, first of all, you know, I've been a big proponent of the fact that enterprise AI is the next wave, and the reason it's the next wave is because what we've seen from AI so far is really just kind of a parlor trick.I liken the, uh, current LLMs that we're mostly getting familiarized with that are creating cute cat, uh, cat memes and that are, you know, helping us maybe quickly generate an idea for a, for a press release. It's all, it's all good fun. But 95% of the world's data sits behind the firewall right now. 95% of the data, and that means that we've only trained AI on a very small percent. And, you know, I had a recent conversation with CEO of IBM Arvind Krishna, and he uses the statistics that only 1% of the world's data has touched AI.So, this massive onslaught of, of data that needs to be properly governed, that needs to be compliant, that needs to be sovereign, meaning the data needs to be in the right country of which its origin to be used in an application, a lot of work to be done. Enterprises are going to take that most valuable asset they have, which is that 95% of the data, and they're going to apply it to build applications that enable them to scale and grow their businesses more effectively. Now,With things like enterprise code development, so you've heard a lot about cloude code or rock code. This is so disruptive. I'll tell you this, I've coded my first application. Actually, I did it this last week. Did you vibe code it or no, I'm absolutely vibe coding it now, but I actually went in, you know, I'm using Terminal. I'm doing, I'm doing this technically. I'm not just like in the, in the, in the web app and chatbot, but what I'm saying is.I'm not a computer scientist. I'm not an engineer, but I was able to go in and build most of the framework and the guts of a, of a business application that would completely revolutionize what was I building? My next generation CEO dashboard application because I wanted to know how I want to see the business. So quickly to kind of sum this all up is we're democratizing AI and we're going to make companies.And we're gonna put companies in a position to completely rethink how they go to market, and they're gonna be able to do so much more with the same amount of resources. You know, we got a lot to think about with jobs and roles and careers, but I'm really optimistic as a whole, with every technological revolution that we will see job growth and scale, but it's gonna look reallydifferent.
5:54 spk_0
I am with you 100%. It's gonna look different. It's gonna come.Uh, but we have to be nimble here. I want to get back to Enterprise AI, talk businesses and tickers, because we could talk about some of the companies that are gonna roll out the capabilities of enterprise, enterprise AI, but it's really every industry that's gonna be affected. So, do you have any picks for us, or do you have any industries where you see it hitting first?
6:16 spk_1
Yeah, well, let me do reasonency bias just today as we're recording.This, Eli Lilly and Nvidia announced a billion dollars partnership. This is to accelerate drug development. This is something that's been done at scale using like supercomputing in the past, but we're going to democratize this, make it more available and help companies like Eli Lilly accelerate their pipeline, more quickly discover, uh, drugs that could help cure various different diseases and illnesses. So, healthcare for sure. Um.I look at companies like Palantir in defense. This is a, it continues. I mean, you, it's maybe a little bit, uh, debatable, it's maybe a little bit, you know, controversial, but look, you've seen the USA and how it's been able to, uh, set itself apart in the defense space. We spend the most, of course, but with really unique insights that come from companies like Palantir. And I'll give you, uh, one more. Uh, I still think the SASS is dead thing has been overplayed.I think companies like ServiceNow is a company I've continued to look at that do workflows. Every business has lots of really difficult work workflows. They have data that's really hard to access, that's spread across tons of different applications. There's gonna be a need, there's a reckoning. You can't just vibe code your way out of this, not in a governed compliant.Uh, way where you're still meeting the requirements of an enterprise. So you're going to look to a company like a ServiceNow, maybe a Salesforce. I do think a prediction is that about 50% of SAS companies will be gone by the end of the decade. But I do think the top 10 or so large SAS companies will successfully make pivots and be able to be the ones.that sort of democratize and simplify the utilization of all this enterprise data that's never been well organized in the past.
7:48 spk_2
Who are some of those companies that you think will end up on top? Well,
7:51 spk_1
as I mentioned, I do think it's going to be Salesforce. I do think it will be ServiceNow. I also do, I like companies like Workday.Uh, that have a ton of data about employees, uh, and, and, and work because I think that's, that's going to matter a lot. Um, I mentioned Arvind Krishna and IBM. I think IBM is kind of an interesting middleware play. They're not the application builder itself, but they have been one of those companies, and I think Arvin even came out and said that, that we're overspending, overbuilding to what we need to do.But what I do agree with, I don't agree with necessarily that we're overspending. I think we need to build all this infrastructure. But what I do agree is that most enterprises don't know where to start, and they don't know how to take all the data, the entire corpus of data that they use to run their businesses and bring it to AI. So, I think some of these companies like IBM and like Accenture are still going to be really valuable.I think they're gonna have to figure out how to work with less people. I do think these body shops, these companies have tons and tons of people billing, because the future of AI is going to be token-driven consumption metrics. So, even like in an Adobe, which is another name of a company, I think it will survive, but they're not gonna be able to charge for seats anymore. They're gonna have to find a way to charge for outputs or actions and consumption.Because the idea of like how many people work for you, that doesn't matter when you have one person with 50 agents working for them. Now you got 51 people, quote unquote, working, you gotta find the right way to charge for that. And that
9:09 spk_0
is, yeah, and that is right around the corner. We gotta pivot a second here because it is time for market show and tell, and we're using intel to teach a simple chart.Idea, it's support and resistance. Think of them as potential price floor and a potential price ceiling. Levels where a stock often stalls out or bounces, even if they don't always hold. If you're watching the video version of this podcast, you're gonna see a 10-year chart of intel, and if you're just listening, that's fine, we're gonna describe what is going on.So we have two red resistance lines drawn on in this Intel chart. One is on top, just shy of the $70 level. Those are the old 2020 highs on the chart. And by the way, the actual highs for Intel, you gotta go back to 1999. But we have another red line.Line at the $45 level, which happens to be right where the price currently is. In between those two levels, $45.70 dollars, price can bounce around and not mean much on this time frame. And if you want more resistance levels, you gotta go to a lower time frame chart. I should also point out that 45 $45 used to be a floor from 2018 through 2021. And it's pretty common for a former floor to turn into a ceiling, and vice versa.One more thing, we also drew a blue circle where Intel price broke up through the $45 level for a brief moment in late 2023. That was a failed breakout, which was quickly reversed, and that's also pretty common too. So we don't necessarily expect support and resistance line.To always hold like a steel wall, technical analysis and chart reading is an art, as they say. But bottom line, for Intel to get back towards those old $70 highs and beyond, it probably needs a new catalyst. So Dan, I'm gonna bring you in here. What's that catalyst for Intel to get back up there?
10:54 spk_1
Thisone is very easy. The catalyst has actually already happened. It was the backing by the United States government, and the backing that came from Nvidia because Intel needs to be the US chip champion and foundry.I am a massive bull for TSMC. Best, best at what the company does. But the US needs to have at least some level of independence from Taiwan to be able to manufacture leading edge chips, and it needs to be done here in the United States. The fact that the government backed it was basically what I would call the mafia would call being made. Um, they've been made, and the fact that Nvidia, who you could say, uh, suggests is a competitor.In some ways backed it is because ultimately I think Nvidia knows that at some point it's gonna need more capacity to manufacture more chips. Policy is going to drive this, Nvidia
11:41 spk_0
doesn't make, they don't fabricate their own chips,
11:43 spk_1
correct? They don't fabricate. They do use mostly TSMC for this. And like I said, TSMC is the best at it, but Intel is building technology that's close to parity. I've had a number of conversations with CEO Lit Bhutan. He's very, uh, calm, collected, and reserved in his vision for the business.But I've sensed a confidence, no words from him, but I've sensed a confidence that those deals are coming. They have some deals in packaging, which is, you know, part of putting the chips together, and Biddy will use them for that, I see as well. But the actual wafer deals, the ones that are making the chips, the, you know, you hear about Blackwell's, you hear about these different chips, Intel.Probably 2-3 years out from now, but this is the year I think we're gonna actually hear the announcements. Once those announcements get made, I think you're gonna see a new breakout, and I think it's gonna help it run towards those all-time highs.
12:31 spk_2
So we're really in the midst of this catalyst here, but we do need to take a quick short break. But coming up, we're talking $1 trillion IPOs and a runaway battle. Stay tuned.This episode is brought to you by the number $1 trillion and that's as investors will likely get served the world's first IPO of a $1 trillion company. And we might even get two guys, OpenAI and SpaceX, are both in the running for a 13 digit company evaluation as they go public, but this isn't just a headline. It's arguably a stress test.This whole bull market that we're currently in, it tells you how much risk appetite is out there, what the market is willing to pay for future dominance, and whether Wall Street thinks the next decade of profits is already locked in. Now, Dan, if you're an investor looking at these $1 trillion IPOs, what has to be true for this price tag to ultimately make sense here?
13:28 spk_1
Well, you would think that they have to have businesses that generate enough revenue and cash flow and and performance, but it's really, it's almost euphoric at this point. It's, it's the exuberance and understanding that these are super limited markets with a very small subset of companies that can compete and what I call an insatiable appetite from investors to participate in these companies.Um, you know, as you saw, OpenAI jump from it's, you know, 10 billion to 150 billion to 300 billion, and now they're looking at around, around, you know, 800 billion. I think they're trying to close that round out now. Um.And the numbers are still sort of eye-watering in a way where you're like, when do they start making money? Doesn't matter because this technology is seen as so important and critical into the future. But I think the problem for OpenAI is they don't have the same moat. You've seen how Google Gemini in a very short period of time have been able to meaningfully take share from OpenAI and also their financial.Obligations make them a little bit scary, in my opinion, for an investor to say, I'm willing to pay $1 trillion to get in. Having said that, my prediction is even if it came out at $1 trillion they wouldn't have a problem on, uh, IPO day. Just because there's just so much interest, and this is like one of those names, kind of like Facebook was in its early era where people are just so familiarized with it, they just want to be part of it.
14:44 spk_0
I, I, you said Facebook and I was just thinking back to their IPO which was kind of a mechanical disaster for the NASDAQ. But let's say that the, the, that there is not really a lot of investor appetite or that there is on day one, but then OpenAI just kind of trends down from there. Is that a signal for us that we should be watching?
15:02 spk_1
Yeah, I mean, if the, if it can't, I mean, a lot of IPOs do that. There is a lot of exuberance or enthusiasm on IPO days aren't making money and, and a name like this. But let me, let me flip to SpaceX. I mean, we're hearing about data centers in space right now. We're seeing, you know, the ability to bring connectivity to the world. We're seeing the, uh, revolutions in Iran. We've seen what's happened in Venezuela and other.Parts of the world where SpaceX has been kind of, and again, that's just one of its technologies, but bringing meaningful payloads into space and potentially, uh, helping us counter the, the dynamics of building data centers and the energy requirements here on Earth is, is super interesting. That's a moat. That is an absolute moat. And that's the one thing is like, well, there is Rocket Lab, and there are a few other companies that are in that space, um.You really, it's just really hard to bet against Elon, and not to mention companies like Google, who are the largest shareholders on the SpaceX cap table, uh, that they understand the need to win in space. Um, so I think that one is gonna do really, really well. My prediction is that, uh, SpaceX will probably be 1.5 or even 2 times larger than OpenAI. I just think OpenAI has presented too many vulnerabilities. I think people are seeing that there are cracks, there are weak spots.Um, and that goes all the way back to its, its potential feud with Microsoft, it's ongoing lawsuit potentially that can it even be a for-profit company. There's still questions around OpenAI's future and can it hold emote? Is language enough or cute video models enough? Can they get into enough industrial and enterprise AI applications to be valuable? And like I said, there's still companies like Meta and Amazon and others that, uh, we're not even talking about here.That are competing and not, uh, one last mention, but anthropic, which is absolutely kicking butt, taking names and doing so by finding a moat in code development.
16:47 spk_2
What do you makeof Google's latest sort of stride that it seems to be hitting? You just said it's investment in SpaceX, but also Google Gemini really picking up here. I was just in the National Retail Federation, uh, big show on Sunday afternoon, and we even heard from Google CEO teaming up with retailers, uh, to launch Gemini.What do you make of all this? Yeah,
17:04 spk_1
I'm, I'm, I'm really proud to say that I was banging the drum on Gemini when it was 5th or 6th on the Mag 7, and I kept saying undervalued, undervalued. Company got a few things right. Remember, this is multi-decades. Google Brain, Google DeepMind, they've been building TPU, the custom AI chip, for well over a decade, 7 generations of building this now into V8. Um, this is a company that understood what it took to build AI.And it has all the right pieces, and then on top of it, it has all the content. It owns a lot of content, it's got YouTube, it's got Google, it's got search, um, and it's able to basically, uh, take its audience and bring them to its new products. And that's something OpenAII doesn't have. OpenAI had a huge customer acquisition, but now all of a sudden Google is basically using its distribution to a huge advantage where it'sAble to move customers over and they're saying, you know what, I can go back to using Google Search the way I used to, and I get AI and I can have workspace, and I have YouTube. Oh, and they can run all their own infrastructure, so they can do, by the way, do it with better economics. Like I said, I love Nvidia for Nvidia, but the fact that Google can build its own vertical infrastructure, its own networking, its own silicon, its own, uh, compute, it's able to make more money, and that's gonna be a big thing in the future years with all the money being spent on the Capex.Is how much margin can these companies that are delivering AI pull out of their AI applications to bring to the bottom line, to expand earnings and to return share uh return to shareholders. And
18:24 spk_2
the innate user base that Google already has definitely makes it competitor to chat GBT.
18:28 spk_1
Best distribution in the world.
18:30 spk_0
I wanna get to Apple before we get to our runway showdown here because Apple has kind of sat out the last few years. We haven't, they haven't been strong on innovation and AI, but they've been a come from behind story many times in the past, and we, we've called them King Apple many times in the past as well, so,Uh, do they come back on AI and when?
18:48 spk_1
I'll, I'll you, my, my words of the day will be regime change. They are due for a regime change,
18:53 spk_0
so no more Tim Cook.
18:54 spk_1
Tim Cook is a Tim
18:55 spk_2
Cook is reportedly set to set down this year. It's in the nearterm.
18:59 spk_1
It's gonna happen. And, and here's the thing, like Tim Cook has been a magnificent CEO for his shareholders, absolutely wonderful.Remember, Steve Cook built on a legacy of Steve Jobs. Steve was the idea guy. Steve brought all kinds of new products and services. What has Tim Cook under is he brought new generations of phones, watches. I mean, uh, the, the Vision Pro is an absolute, uh, failure, uh, credit cards, um, movies. I mean, the, the innovate.They need innovation though. So I think they need to flip back and find a great number 2 that's like next Tim Cook, and they need a Steve Jobs visionary type to come back and really lead that company to bring new products, services. They can stay in consumer, they don't have to get in a data center. They don't even necessarily, they could partner with Google. They don't even necessarily need to build their own models. They've got, talk about distribution. They've got the best on the planet.But they need to get back to innovating. I do think they've become a safe bet for investors, because they buy a lot of their stock back. They aren't taking big risks, they haven't gone big on capbacks. But a lot of people are wondering, as fast as things are innovating is what does 3 or 5 years from now look like if phones aren't even phones. And there's a very real chance that the device that we're using today will not be the device we're gonna be using 3 to 5 yearsfrom now.
20:10 spk_0
Very good point, sir. Now we've got a market take on a Hollywood gab show staple. We call it Who wore Better. And today,It's back in Vogue edition, and we're pitting Amazon versus Meta. Both names have re-entered the chat as 2026 winners, but for totally different reasons. Amazon's story is AWS, a capacity and execution reset. Think infra build out energy, more data centers, more compute, more of the picks and shovels that make AI run. Meta's story is a little bit different. It's about turning AI into products people use every day, and proving that all that talent and spending can show up in real results. Same.AI theme, two different runway looks. So Amazon is a builder here. Meta is a product machine. And Dan, if you're gonna pick one that wins it in 2026, who's it gonna be?
20:58 spk_1
Yeah, they were both on my list of, of, of winners because they both underperformed last year, and I think they have made those changes. But because your question doesn't allow me to go into too much detail on that, no, I, I, I, I'm already on that path, as you see, um, is I, I like Meta because I think it's made massive investments in humans.Capital, and it's such a cash machine. So they have those two things working for it. They can pivot away, uh, a little bit from maybe some of those opex, the reality lab stuff and move it to AI, but those super intelligence bets, the talent that it's brought over, we haven't seen anything from it yet. We really didn't. We talked about those billion dollar per employee hires that they made, and then we're like, what happened? But the thing is, is the expectation that that 3 or 6 months is gonna turn into something. I think they're, they've been in their cave. I think, you know, Batman's in their cave, and they are building something, and I think we're gonna see that, um.I do really think Amazon has they're another one with great distribution though. Two things that I'll just say on Amazon, why I like them both. One is, Amazon fell behind in the AI race. They underinvested early, they have caught up in that investment, and they have a huge customer base in cloud. Their cloud business is still the largest by a long, by a long margin. And 2 is they are going to be the number one beneficiary of physical AI.In the next decade. When they can, you know, they're already putting robotics in their warehouses and distribution, but you think about autonomous vehicles, drone deliveries, robot warehouses that are doing same-day distribution. I know Google and Walmart are stepping up and trying to compete right there, but Amazon is gonna be almost impossible to compete with when they start taking on margin, because remember guys, they did not make any, they don't really make money on commerce. They make money on ads, they make money on AWB.US, they make, you know, they make money on their marketplace, but their, their e-commerce is a lot. Imagine when they can take all that cost out. I don't know what's gonna happen to all those jobs, but when they can take all that cost out and start delivering commerce at this rate, you're talking about a company that's gonna be doing $1 trillion a year in revenue. Dan,
22:51 spk_0
it has been wonderful talking to you again, and we're not gonna wait 9 months next time. I promise we're gonna get you back sooner. Uh, just a brief recap, we began with Enterprise AI becauseIt's not about the chatbots anymore, and every single industry is gonna be disrupted, and I don't have the time to go through all of the points and highlights and industries that uh we're talking about, but be sure that 2026 is gonna be a year when we see a lot of uh shakeout here. Also,Look at this. We're also talking about support and resistance. Intel, what's it gonna take for this foundry, and it is a foundry, uh, the largest in the US to get back on top. Um, maybe that's gonna happen in the next few years, we'll have to get Dan back for that one as well. And also the $1 trillion IPO. Are we gonna get one or two?My bet is on SpaceX just absolutely killing it, and we'll have to see how that shakes out. But once again, Dan, it's been a pleasure having you here. And we have wound things down here at Stocks and Translation, but be sure to check out all the other episodes of the video podcast on the Yahoo Finance site and mobile app. We'll catch you next time.
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