Honestly, the start of 2026 feels a bit weird. If you’ve been looking at your portfolio lately, you might have noticed that the "old reliable" tech giants aren't the only ones doing the heavy lifting anymore. Don't get me wrong, AI is still the big elephant in the room. But something has shifted in the last few weeks.
The S&P E-Mini Futures actually blew past the $7,000 level on January 7, and while that sounds like cause for celebration, the "how" is more interesting than the "what." We are seeing a massive broadening. It’s not just Nvidia anymore. It's banks. It's airlines. It's even aluminum.
The New Face of Stocks That Are Rising
For a long time, if you wanted to find stocks that are rising, you just looked at whoever was selling the most expensive GPUs. While Nvidia (NVDA) is still a monster—trading around $188 with a market cap of $4.5 trillion—the momentum is bleeding into other sectors.
Take a look at the energy and materials sectors. They’ve basically come out of nowhere to lead the pack in early 2026. The Energy Select Sector SPDR (XLE) and Materials (XLB) are both up about 7.5% year-to-date, which is wild considering the broader S&P 500 (SPY) is only up about 1.2% in the same timeframe.
People are getting tired of "frothy" valuations. They’re looking for value.
Why Semiconductors Are Still Rebounding
Despite the shift, you can't ignore the chips. Taiwan Semiconductor Manufacturing Co. (TSM) just dropped a fourth-quarter bombshell, reporting a 35% profit increase. That single report sent their U.S.-listed shares up 4.5% in a single day.
- TSMC (TSM): Record revenue of NT$1 trillion.
- ASML: Jumped over 5% because they supply the gear TSMC needs.
- Micron (MU): Riding the memory chip wave, which is seeing 20% price hikes.
It’s a "pick-and-shovel" play. If the world wants AI, it needs the hardware, and the hardware makers are printing money. But there’s a catch. The Trump administration has been tightening security requirements on exports, specifically for Nvidia’s H200 chips going to China. This kind of geopolitical friction is why some investors are starting to look elsewhere for their gains.
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The Financial and Industrial Resurgence
Banks are finally having their moment in the sun. Goldman Sachs (GS) and Morgan Stanley (MS) both saw jumps of nearly 6% following their latest earnings reports. Why? Because dealmaking is back.
IPOs and M&A activity are rebounding hard. When companies start buying each other again, the big banks take their cut, and investors are finally pricing that in. It’s a classic cyclical move. When interest rates stabilize or start a non-recessionary slide—which is what we’re seeing now—the "lending ecosystem" thrives.
The "Dark Horse" Sectors
- Airlines: Delta (DAL) and United (UAL) are showing weirdly strong momentum. Delta is up, and United is tracking right behind it.
- Materials: Alcoa Corporation (AA) is absolutely ripping, up over 13% year-to-date.
- Utilities: This one is actually AI-related. Data centers need power. The Morningstar US Utilities Index has been transformed from a "sleepy" dividend sector into a growth engine because of the sheer amount of electricity these AI models consume.
What Most People Get Wrong About This Rally
Most folks think the rally is just a continuation of 2025. It’s not. 2025 was about training AI. 2026 is becoming about inference and application.
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Nvidia CEO Jensen Huang recently pointed out that "reasoning AI" consumes up to 100 times more compute than older models. That shift is why memory chipmakers like Micron are suddenly outperforming. We’re moving from the "build-it" phase to the "use-it" phase.
Also, look at the "Magnificent Seven" under the hood. While Nvidia and Microsoft (MSFT) are still darlings, others are struggling. Apple (AAPL) and Alphabet (GOOG) have actually seen some year-to-date dips or flat performance. The "winner-takes-all" dynamic is getting more specific. You can't just buy a tech ETF and expect to win big anymore; you have to be picky.
Navigating the 2026 Landscape
If you're hunting for stocks that are rising, you have to look at the intersection of AI and the physical world. Goldman Sachs is calling this the "Great Re-leveraging."
Companies that maintain strong free cash flow while adopting AI to boost efficiency are the new gold standard. It’s not just about who builds the AI; it’s about who uses it to cut costs. Think logistics, healthcare, and even big-box retail. Amazon (AMZN) is a prime example—they’re being called a "sleeper" stock because of how they're integrating AI into their massive delivery and warehouse network.
Actionable Next Steps for Investors
- Check your sector weightings. If you’re 90% tech, you’re missing the 7% moves in energy and materials that are currently propping up the market.
- Watch the memory market. Price hikes in DRAM and NAND are expected to hit 20% this quarter. Tickers like MU and Western Digital are the primary beneficiaries here.
- Follow the power. Utilities are no longer just for your grandma’s portfolio. Look for companies servicing "data center alley" in Virginia or new tech hubs in Texas.
- Monitor the $7,000 level. The S&P 500 has a habit of "bouncing" around big round numbers. If it holds above 7,000, the momentum could carry through the first half of the year.
The market is currently in an "optimism phase." Valuations are high, yes, but earnings growth is actually backing it up for a change. Just keep an eye on those electricity costs—if they rise too fast, regulators might step in and take the wind out of the utility rally. Diversification isn't just a buzzword this year; it's the only way to catch the rotation as it happens.