Key Points
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Recession and inflation worries have some older investors pulling back on their stock-buying habits in 2026.
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But Gen Z and millennials are more optimistic about the market’s potential, and they’re focusing on AI stocks.
- 10 stocks we like better than Nvidia ›
There’s a lot of uncertainty in the economy, given geopolitical instability, increasing layoffs, new tariff announcements, and a recent inflation report that showed inflation rising two times faster than expected.
All the factors combined are raising fears of a recession around the corner, prompting some investors to pull back from buying stocks. But not all investors are pessimistic. Gen Z and millennials are increasing their stock buying in 2026, according to research by The Motley Fool.
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The Motley Fool’s 2026 Investor Outlook and Predictions Report found that, while recession and inflation topped investors’ concerns, 68% of Gen Z and 64% of millennials plan to increase their stock investments in 2026, compared to just 46% of Gen X and 39% of baby boomers.
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Gen Z and millennials continue to load up on stocks
While recession and inflation fears are driving some investors to hold their stocks rather than buy, there’s a clear divide between older and younger generations. More than half of baby boomers and 44% of Gen X plan on holding stocks in 2026, compared to just 31% of millennials and 25% of Gen Z.
And a lot of younger investors’ enthusiasm around buying stocks stems from their optimism about artificial intelligence. The Motley Fool survey of 2,000 investors found that:
- 71% of Gen Z and 69% of millennials are bullish on AI stocks.
- 58% of Gen X and 52% of baby boomers are bullish on artificial intelligence.
- Among investors who already own AI stocks, 81% have a positive outlook for AI investments in 2026.
Whether it’s youthful optimism, a longer investment horizon before retirement, or the fact that some younger investors may not have yet experienced a prolonged bull market, the above-average optimism in buying stocks — particularly in AI — this year is clear.
One fantastic long-term AI stock for any age
Whether you’re a Gen Z or baby boomer investor, artificial intelligence stocks offer a lot of potential for future growth. And with some AI stocks recently experiencing declines, one stock that looks like a great buy right now is Nvidia (NASDAQ: NVDA).
Nvidia holds a commanding lead in the GPU market — with about 90% market share right now — and much of that comes from its processors running AI data centers. The company’s massive lead in this space led CEO Jensen Huang to say recently that he expects sales from the company’s data center segment to reach $1 trillion through 2027. That’s on top of the company’s impressive fiscal 2026 AI data center sales, which jumped 68% to nearly $194 billion.
The large 2027 sales estimate comes as tech giants are ramping up their capital expenditures (capex) this year, mostly for AI data centers. Meta, Alphabet, Microsoft, and others will collectively spend $650 billion in 2026 capex. And with Nvidia’s stock trading at just 36 times the company’s trailing earnings — which is on par with the tech sector’s price-to-earnings (P/E) average of 36 right now — Nvidia’s shares are well priced given the company’s long-term prospects.
For investors of any age looking to ride AI’s wave in 2026 and beyond, Nvidia remains a great stock to own.
Should you buy stock in Nvidia right now?
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
