Tech investor Dan Niles warns of a “choppy” end to 2026 but sees massive upside in specific turnaround stories and overlooked tech plays, including a resurgence for Apple Inc.(NASDAQ:AAPL) and a breakout year for Boeing Co.(NYSE:BA).
A Tale Of Two Halves
Speaking on the Schwab Network, Niles, founder of Niles Investment Management, outlined a volatile roadmap for 2026. He predicts the market will ride a wave of “easy money” in the first half of the year, fueled by the Federal Reserve's treasury purchases and corporate tax benefits.
However, Niles warns investors not to get too comfortable. He forecasts a significant drawdown toward the end of the year, citing sticky inflation above 2%, potential political instability from midterm elections, and stretched valuations in the S&P 500.
The Tech Plays: Apple, Cisco, Impinj
Despite his caution on the broader Magnificent 7, Niles is bullish on Apple. He predicts a massive upgrade cycle driven by the launch of an AI-enabled Siri and a long-awaited foldable iPhone.
“The biggest upgrade cycles happen around form factor changes,” Niles noted, expecting Apple to finally shake off its sluggish growth.
He also favors Cisco Systems Inc. (NASDAQ:CSCO) as a value play on AI infrastructure. With enterprise networks due for a post-COVID upgrade, Niles argues Cisco offers a safer entry point than high-flying AI stocks, trading at a discount to the S&P 500.
Rounding out the tech list is IMPINJ Inc. (NASDAQ:PI), a leader in RFID technology. Niles believes the company is hitting an inflection point as its chips drop to a penny apiece, allowing expansion from apparel into the massive food and grocery market with adopters like Walmart Inc. (NASDAQ:WMT).
Betting On Turnarounds: Boeing And Nike
Niles is shifting focus to “turnaround” stories for 2026. He highlighted Boeing, noting that the company's recent regulatory clearance to self-certify planes will unleash shipment volumes and drive free cash flow to the billions.
Finally, Niles likes Nike Inc.(NYSE:NKE). Under the “back to basics” strategy of new CEO Elliott Hill, Niles sees a classic valuation disconnect.
With North American revenues already recovering, he views Nike's decade-low valuation as a prime buying opportunity before the turnaround fully takes hold globally.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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