A new year for stock markets in 2026 will not change the bullish narrative for technology. In contrast, retail firms and value investing firms will likely underperform this year.
Nike (NKE) gained 11.11% in the last week of 2025. Speculators are betting that the athletic clothing firm is worth the premium. It trades at a current valuation of 37.4 times price-to-earnings ratio. NKE stock is still in a bearish downtrend. It needs to break out above $70 to reverse that pattern.
In the semiconductor sector, GlobalFoundries (GFS) gave up more than half of its recent runup. GFS stock rose from around $32 to above $40. It closed at $34.92 after Wedbush downgraded the stock. Analysts at the firm warned that despite a path to a better future model, the firm faces near-term risks. That includes weak consumer electronics handset sales.
Memory chip prices are skyrocketing. For example, DDR5 prices rose by up to 500% in just a few months. Expect PC, smartphone, and tablet prices to rise by at least 5%-10% in 2026, hurting demand.
Watch Berkshire Hathaway (BRK-B) in 2026. Legendary investor Warren Buffett served his last day as CEO on December 31, 2025. Buffett will still serve as chairman of the board. CEO Greg Abel will take over.
BRK-B stock gained 10.89% in 2025, compared to a 16.35% return from the S&P 500 (SPY).
