Tech is capping off a blockbuster 2025 driven by AI infrastructure spending that fueled much of the sector's gains. But with as we head into 2026, the story is shifting from pure growth to execution, competition, and also risk. So for more on this, we're going to bring in Bob O'Donnell.He is a president of technalysis research. Bob, it is great to see you here and we talked about this earlier in the year on stocks and translation. So give us an update.What do you see the AI. what has been the dominant theme ...

Core Insights - The AI industry is maturing, leading to potential challenges for Nvidia, which currently dominates the AI accelerator market [1][2] - Despite Nvidia's growth and profitability, signs of a slowdown in AI demand could negatively impact its stock performance [2][7] Group 1: Generative AI Challenges - A significant number of generative AI projects are failing to deliver positive results, with a report indicating that 95% of such pilots do not yield meaningful outcomes [5][4] - The high costs associated with AI technology make it difficult for businesses to justify investments if they do not see returns, potentially weakening demand for AI computing services [6][7] Group 2: Financial Struggles of AI Start-ups - AI companies, including OpenAI, are experiencing substantial cash burn, with OpenAI projected to lose $5 billion against $3.7 billion in revenue last year [9][10] - The unsustainable pricing of AI services, coupled with the high costs of Nvidia's GPUs, poses a risk to the profitability of AI companies [10][11] Group 3: Limitations of AI Model Improvements - While AI models continue to improve, the pace of advancement is slowing, with recent launches not significantly outperforming existing models [12][13] - If companies cannot justify increasing expenditures on AI training due to diminishing returns, demand for Nvidia's GPUs may decline [13][14]