Late in December (read here), we explained why AI (artificial intelligence) will continue to drive global stock market returns in 2026. In that feature, we listed several low-cost ETF options to help you position your portfolio, if that’s want you want to do.
Basically, analysts at Barclays and BlackRock wrote extensively about AI in their respective 2026 Outlook notes recently. The next wave of AI innovation will move beyond answering questions. It will execute actions autonomously, which could dramatically enhance productivity across industries, wrote Barclays.
BlackRock highlighted AI as the macro story shaping global growth. They estimated global AI capital expenditure to possibly reach $5 trillion to $8 trillion by 2030. Consequently, momentum is accelerating into 2026.
BofA’s top AI internet stocks
Bank of America has now thrown its weight behind AI, telling clients that it remains the dominant theme for internet stocks heading into 2026. Analysts, led by Justin Post, claim large-cap performance will be driven by AI sentiment, returns on capital spending, and clearer paths to monetisation.
Enthusiasm around AI continues to build. Moreover, ‘peak optimism’ may not emerge until high-profile, AI-focused companies begin to list publicly. Until then, investor focus is likely to stay on established platforms with scale, data and distribution advantages.
Within that backdrop, the BofA team have highlighted Amazon (AMZN), Google-owner Alphabet (GOOG) and Booking as its best-positioned large-cap AI plays across ecommerce, media and travel.
| Stock | Price | Market cap |
| Alphabet (GOOG) | $329.14 | $3.97tn |
| Amazon (AMZN) | $247.38 | $2.64tn |
| Booking (BKNG) | $5,440.10 | $177bn |
Amazon’s capacity levers
For Amazon, the analysts see benefits from ‘underappreciated benefits from 2025 capacity additions’. This is alongside accelerating cloud demand and improving returns from AI investment.
They also pointed to Amazon’s expanding role in agentic AI. They believe it could enhance shopping experiences, advertising effectiveness and conversion rates over time.
Agentic AI refers to autonomous artificial intelligence systems. These systems can perceive, reason, plan, and act independently to achieve complex goals with minimal human intervention. What makes it different to traditional AI is that AI agents can proactively take the initiative rather than just responding to prompts.
BofA described Booking as a standout beneficiary of agentic AI. They highlighted the potential launch of an agentic booking product in 2026. This could provide users with a vastly simplified trip planning experience.
Additionally, it would improve personalisation and drive higher user engagement across the platform.
Multiple tailwinds for Alphabet
The analyst team at BofA expect Alphabet to enjoy multiple AI-related tailwinds in the year ahead. The team cited Gemini-driven traffic growth, upside from cloud services and the company’s broad exposure across search, advertising and AI infrastructure.
Google Cloud is one of the world’s top three hyperscale cloud suppliers with around 13% global market share. That compares to Amazon Web Services (~30%) and Microsoft Azure (~20%).
Alphabet, BofA says, is ‘best positioned across AI’. This is supported by improving sentiment following recent product launches and partnerships. Additionally, its ability to capture AI-driven advertising and subscription revenue.
Overall, Alphabet shares were the top-performing of all the so-called ‘Magnificent Seven’ stocks last year, rallying more than 60%.
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Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
