1st Quarter 2026
Dear Clients and Friends,
We are now entering one of the most exciting periods in modern history: the Artificial Intelligence Revolution.
For decades, computing was mostly retrieval-based. Human created information, a document, spreadsheet, program, a photo and computers were very good at storing it and retrieving it quickly. In other words, computers followed instructions but they didn’t really think.
That’s changing.
Today’s artificial intelligence systems don’t just retrieve information, they generate it. Every time you interact with an AI system, the response you receive is newly created based on probability, learning, and context. In plain English, these machines are producing answers based not on rote memory but on reasoning and prediction. This shift is reshaping how we work, communicate, create and ultimately how value is generated in the global economy.
At the Consumer Electronics Show (CES) in Las Vegas last week, NVIDIA’s CEO Jensen Huang delivered a keynote that neatly captured where we are in the AI cycle and where we’re heading next. Huang’s remarks weren’t about sci-fi fantasies, they were about real, deployable technology that’s entering the market now and laying the groundwork for the next decade of innovation.
Here are a few points I think investors should note:
New AI Platforms with Real Power
Huang unveiled NVIDIA’s new Vera Rubin platform, a next-generation AI computing system designed for massive workloads. According to early reports, these chips are already in full production and can deliver several times the AI performance of previous generations.
From Virtual to “Physical AI”
One striking part of his speech was the emphasis on what’s being called physical AI, systems that don’t just live in software but interact with the real world through robotics, autonomous vehicles, and intelligent machines. Huang described this as something of a “moment” akin to when AI first broke into the mainstream, signaling a shift from purely digital assistants to agents that can sense, act, and reason in physical environments.
Open Models and Broad Collaboration
Huang’s NVIDIA also highlighted open models for industries like healthcare, robotics and autonomous driving. Meaning, businesses large and small won’t be locked out of the AI ecosystem. These open frameworks can accelerate adoption across fields far beyond cloud computing and social media. In short, the message wasn’t hype, it was acceleration. Real infrastructure is being built now and the software and business models that run on it are following quickly behind.
AI Is Not a “Tech Thing” — It’s an “Every” Thing
One of the most common questions we hear is: “Isn’t AI just another tech trend?” The simple answer is: NO Artificial intelligence has applications in every company, every industry and every country. This is not limited to Silicon Valley or software companies. AI is becoming a core tool much like electricity, the internet, or smartphones before it. Think of AI less as a product and more as a general-purpose engine for productivity and decision making.
Productivity Gains: Doing More With Less
Historically, major economic leaps have come from productivity improvements. Tractors replaced manual farm labor. Computers replaced filing cabinets. Email replaced fax machines (thankfully). AI is now accelerating productivity in ways we haven’t seen before:
• Software code can be written faster and with fewer errors
• Legal and financial documents can be summarized instantly
• Medical images and diagnoses can be analyzed more accurately
• Customer service can operate 24/7 without losing patience
Real-time information can be analyzed immediately for performance optimization Supply chains can be more automated with AI predicting sales trends, consumer behavior, shipping delays and even weather.
For businesses, this means lower costs, faster growth, and higher margins. For workers, it means routine tasks are increasingly automated, freeing humans to focus on judgment, creativity, and strategy (the things we’re still much better at).
From an investment perspective, productivity gains tend to support long-term earnings growth, which is ultimately what drives stock prices. Companies that embrace AI will thrive and companies that don’t will dive.
Autonomous Driving: The Quiet AI Revolution
Self-driving cars have taken longer than expected but progress continues steadily. New AI models, like those NVIDIA showcased for autonomous vehicles, are moving response systems closer to human-like reasoning rather than simple pattern recognition. While full autonomy everywhere may still be years away, partial automation is already here with improving safety, logistics, and efficiency. Over time, this technology has the potential to:
• Reduce accidents
• Lower transportation costs
• Improve supply chains
• Increase mobility for aging populations
On a personal note, most mornings I hop in my Tesla, push one button and get driven from my driveway to office parking lot. I don’t have to touch the wheel or the accelerator at all. The truck even knows my parking spot at the office and parks in it without any intervention. This AI technology is truly mind-blowing.
Humanoid Robots: From Science Fiction to Factory Floor
Robots are no longer limited to repetitive factory tasks behind cages. With advances in AI vision, balance, and decision-making, humanoid robots are beginning to perform tasks that look surprisingly human. These systems are being designed to:
• Assist in manufacturing and warehouses
• Support healthcare and elder care
• Perform dangerous or physically demanding jobs
• Do laundry, fold laundry, and cook
While widespread adoption will take time, the economic implications are enormous especially in a world facing labor shortages and aging demographics. If you don’t believe me, check out this amazing video for yourself: https://www.youtube.com/watch?v=Eu5mYMavctM
So… Is This a Bubble?
It’s fair to ask whether enthusiasm around AI has gone too far. History tells us that transformational technologies often experience periods of hype, pullbacks, and volatility along the way. This is normal. What matters most is not short-term market excitement, but long-term adoption and earnings power. AI is already being deployed at scale, generating real economic value and becoming deeply embedded in business operations. Our approach remains disciplined:
• Focus on companies with real cash flows and durable advantages
• Avoid chasing headlines
• Maintain diversification
• Rebalance when necessary
• Prudently Invest for your goals while acknowledging your risks
In other words, we participate in innovation without abandoning prudence.
A Final Thought
Every major technological shift feels uncomfortable in real time. The printing press, electricity, automobiles, the computer and the internet were all met with skepticism, fear and overconfidence at different moments.
AI is no different. It will be TRANFORMATIVE.
While we can’t predict every twist and turn, we can stay grounded, diversified, and focused on our long-term goals. That discipline combined with thoughtful exposure to innovation is how wealth is built and preserved over time. As always, if you have questions about how these trends fit into your portfolio or financial plan, we’re just a call away. Wishing you a healthy, prosperous, and exciting 2026.
The views stated in this letter are not necessarily the opinion of Cetera Wealth Services, LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.