The Quantum Edge

For investors trying to navigate the buzzword bingo of modern tech investing, here's a helpful data point: if you had to pick just one theme for 2026 among AI, quantum computing, nuclear energy, and space, which would you choose?

Jay Woods, Chief Market Strategist at Freedom Capital Markets, has a clear answer. "I still think quantum is a place where we can see some sizable pockets of upside growth as those contracts keep getting awarded," Woods told MarketDash.

It doesn't hurt that Nvidia Corp (NVDA) CEO Jensen Huang has been calling quantum the next big thing. "I listen when Jensen speaks," Woods said. "So quantum stocks are where I would want to put money."

Woods isn't just talking theory here. He owns Rigetti Computing (RGTI), though he's already taken profits on about 70% of his position after the stock went "a little parabolic." Still, he's keeping skin in the game. "I still think it's a place where I want to have some exposure."

The broader context matters too. Woods expects the S&P 500 to post lower gains in 2026 compared to 2025, which makes picking the right themes even more important when the rising tide isn't lifting all boats quite as enthusiastically.

AI Gets More Complicated

Just because quantum topped Woods' list doesn't mean artificial intelligence is yesterday's news. But the AI investment thesis has definitely matured beyond "slap AI on your earnings call and watch your stock fly."

"I don't think the AI story is dead by any means," Woods explained. "But I think the AI story has changed to what have you done for me lately? Show me some results. Where is the growth?"

Case in point: Salesforce Inc (CRM) and its Agentforce product. "Agentforce was very promising, doing well, and then had some stumbles," Woods noted. Meanwhile, Adobe Inc (ADBE) has faced its own challenges. "Look at Adobe. Adobe has struggled. It's picked up some steam lately, but that AI story is getting competitive and there are going to be winners and losers."

The takeaway? You can't just buy anything with AI exposure anymore. Woods suggested investors need to find companies with AI capabilities in less crowded sectors that are actually showing measurable promise. "AI is alright. We know there's potential."

Who's Actually Delivering

So which companies are executing well on the AI front? Woods pointed to Nvidia as a company "hitting on all cylinders" when it comes to AI growth. He also named Micron Technology (MU) and Broadcom Inc (AVGO) as companies delivering real results.

The bottom line, according to Woods: "You now have to do a little more research when investing in the AI story."

That's probably healthy. The shift from "buy everything AI-adjacent" to "show me the actual revenue and margins" represents markets doing what they're supposed to do—moving from hype to fundamental analysis. Quantum computing might be earlier in that cycle, which could explain why Woods sees more runway there for 2026.

Of course, being early in the hype cycle has its own risks. Quantum computing has been the "next big thing" for a while now. But with major contracts being awarded and Jensen Huang's stamp of approval, maybe 2026 is when the quantum story finally delivers for investors willing to do their homework.