Prial: Industrials "Key Growth" in AI Megatrend & Overlooked Stocks Powering It

• Likeliest outlook for 2026 is economic growth reacceleration, leading to continued market gains.
• Industrials are identified as the key growth area, fueled by AI data center build-out, power grid improvements, reshoring of manufacturing, and increased defense spending.
• The market is broadening beyond the 'Magnificent Seven', with small-cap stocks being 'incredibly under-owned and under-loved' and offering significant upside potential.
• Investment strategy for AI focuses on suppliers and 'blocking and tackling' companies that provide essential components and services rather than the direct AI giants.

Nancy Prial is optimistic about the market outlook for 2026, citing an accelerating economic environment, potential Fed easing, and a broadening market beyond the 'Magnificent Seven'. She highlights industrials as a key growth area, driven by AI-related infrastructure and reshoring, and sees significant opportunities in undervalued small-cap companies.