Amit Nayyar 5.0 7 ideas

"We expect 2026 to be a big deal making year in terms of capital formation as well as m and a." A resurgence in M&A and IPOs directly translates to higher advisory and underwriting fees for major investment banks, boosting their revenue and earnings after a prolonged drought. LONG major investment banks ahead of the anticipated 2026 dealmaking boom. Escalation of geopolitical conflicts or persistent inflation could cause a prolonged freeze in capital markets.

"The IPO pipeline looks healthy across the board... The US will probably see a lot of blockbuster IPOs for some of these companies, once in a generational companies like SpaceX and Anthropics." The entry of high-profile, generational companies into the public markets will absorb significant institutional liquidity and revitalize interest in new issues, raising the quality bar for the broader IPO market. WATCH the IPO ETF and new public listings as blockbuster names come to market and shift liquidity dynamics. Market volatility or a higher-for-longer interest rate environment could delay these highly anticipated listings.

"You'll see very quickly that there would be a bit of a dispersion between business models, which will have long enduring value over a long period of time, whereas some business models, which probably are not nimble enough or not using it enough, will probably see the valuation even go down further." The software sector is entering a phase of AI-driven dispersion. Incumbent SaaS companies that successfully integrate and monetize AI will capture market share and command premium valuations, while laggards will de-rate and become consolidation targets. LONG high-quality, large-cap software companies that are leading in AI integration. AI monetization takes longer than expected, or macroeconomic headwinds compress software multiples across the board.