Milk Road AI The AI Market Has Entered a New Phase: Here’s Where the Real Alpha Is in 2026 w/ Amit
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Jan 15, 2026 Amit Kukreja, an AI investing expert and creator of AmitX, discusses the evolving landscape of AI markets. He argues that 2026 will mark a pivotal phase, shifting investor focus from mega-caps to smaller, thematic companies. Amit outlines a framework for identifying promising investments, emphasizing the importance of strong management and scalable opportunities. He also critiques Meta's AI strategies and shares insights on the burgeoning fields of robotics and energy, suggesting that growth will come from unconventional sources.
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AI Supercycle And Alpha Rotation
- The AI cycle entered a multi-year supercycle after late 2022 and is now in a phase where alpha shifts away from mega-caps.
- Smaller, high-beta midcaps (2–10B market cap) may deliver outsized returns in 2026 as derivatives of the AI buildout rally.
CapEx And The Data‑Center Time Horizon
- Semiconductor and data-center CapEx is cyclical but likely has 3–5 more high-build years per major CEOs.
- If CapEx persists, the AI infrastructure cycle could remain bullish for multiple years rather than ending abruptly.
Watch Early‑Year Flows For Rotation Signals
- Monitor institutional flows in January–February to confirm if money rotates from mega-caps into thematic midcaps.
- Use early-year performance to adjust positioning toward space, energy, and defense midcaps if institutions chase alpha there.