AI Daily: BofA predicts big AI announcements possible in 2026

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

ANOTHER PIVOTAL YEAR: AI capabilities remain a leading asset and valuation driver across large-cap Internet, BofA says as the firm discusses potential 2026 AI catalysts across large cap internet. As infrastructure investment spend continues to rise for all Internet mega caps, the firm expects the importance of proprietary chip technology, frontier models, user data, and scaled consumer distribution to increase. BofA believes 2026 is likely to be another pivotal year for market-moving AI announcements. Further, the firm sees 2027 Internet mega-cap average price to earnings valuation, at 22-times, attractive vs the S&P at 20, given growing AI asset base and superior revenue growth.

On possible 2026 AI announcements and implications, BofA says Amazon (AMZN) and Microsoft (MSFT)-backed OpenAI signing a deal for agentic commerce; Google (GOOGL) and Apple (AAPL) signing an AI mobile deal; Meta (META) launching AI video creation tools across its major apps; Uber (UBER) signing a Level 4 AV commitment with a major Asian OEM; Booking (BKNG) launching chat-based booking capabilities; DoorDash (DASH) expanding deliveries with AV partners; and AI company IPOs setting a positive valuation framework for the sector are among its potential events to watch.

14A NODE PRODUCTION PARTNERS: Melius Research upgraded Intel (INTC) to Buy from Hold with a $50 price target. Recent news that Nvidia (NVDA) tested the 18A process node and didn’t like it was “stale,” says the firm, which sees “a good chance” that Nvidia and Apple (AAPL) “take a hard look” at producing chips on the 14A node by 2028/2029. This news could fully filter into the stock going throughout 2026, driving higher book value, adds Melius, who “really likes” Intel CEO Lip-Bu Tan and says that “more importantly” more powerful people like President Trump, Secretary Lutnick, Jensen Huang and Lisa Su “like him even more as a business partner.”

RADAR TECH, AI COMPUTING: Arbe Robotics (ARBE) announced that it is combining Arbe’s radar technology, with NVIDIA (NVDA) accelerated computing, creating an advanced platform for AI-based perception for hands-off and eyes-off driving. “This initiative allows us to create a new benchmark for perception in all conditions. The collaboration accelerates the adoption of safer, more reliable, and more affordable autonomous driving solutions for automakers worldwide,” says Kobi Marenko, co-founder and CEO of Arbe. “At CES, we are demonstrating our ultra-HD radar in action and how it navigates complicated highway scenarios at true highway speeds.”

GALAXY AI: Samsung (SSNLF) plans to double the number of mobile devices it produces with the “Galaxy AI” feature, which is powered by Google’s (GOOGL) Gemini, Hyunjoo Jin of Reuters reports. The company intends to produce 800M products with the feature in 2026.

ROBOTAXIS: London is set to become the first city where both U.S. and Chinese robotaxis operate, as Waymo (GOOGL) and Baidu (BIDU) prepare to launch their robotaxis in the city in 2026, The Financial Times’ Tim Bradshaw reports.