The International Monetary Fund has raised its 2026 global growth forecast, noting that the world economy has proven to be more resilient than expected as businesses and economies adapt to easing tariffs and a continued AI investment boom supports activity and asset markets.
In its latest World Economic Outlook update, the IMF forecast global GDP growth at 3.3% in 2026, a 0.2 percentage point increase from its October estimate. It maintained the same pace for 2027 due to sustained capital spending on AI infrastructure and easing trade frictions.
“We find that global growth remains quite resilient…So, in a sense, the global economy is shaking off the trade and tariff disruptions of 2025 and is coming out ahead of what we were expecting before it all started.”
-IMF chief economist Pierre-Olivier Gourinchas told reporters, as reported in Reuters.
Economies have been adjusting to higher US tariffs through supply chain re-routing, new trade agreements, and China’s shift of exports toward non-US markets. The fund has lifted its US growth forecast for 2026 to 2.4%, citing massive investment in AI infrastructure, such as data centers, powerful AI chips, and power.
At the same time, Gourinchas noted that the AI boom poses risks for heightened inflation if it continues at the pace it is today. However, if expectations that AI-driven productivity gains and profits are not realized, it may trigger a correction in high market valuations, which could impact demand.
While AI is among the risks that are tilted to the downside, the IMF said that it also represents significant upside for the global economy, provided there is a surge in investment and productivity gains are realized.
“As a result, global growth may be lifted by as much as 0.3 percentage points in 2026 and between 0.1 and 0.8 percentage points per year in the medium-term, depending on the speed of adoption and improvements in AI readiness globally.”
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10. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 56
Microchip Technology Incorporated (NASDAQ:MCHP) is one of the 10 AI Stocks Making Waves on Wall Street. On January 15, Piper Sandler analyst Harsh Kumar raised the price target on the stock to $85.00 (from $80.00) while maintaining an Overweight rating. The analyst sees upside for Microchip, driven by multiple growth levers, and identifies it as its “top mid-cap pick.”
Kumar believes calendar 2026 is shaping up to be very positive for MHCP, particularly with the company witnessing strengthening order momentum over the past two months.
This recovery appears to be broad-based but primarily driven by the industrial sector, with automotive now stabilizing as well. The firm noted that it has heard of similar constructive commentary from other companies as well, particularly ON and ADI.
It also highlighted potential revenue catalysts, particularly the expectation that Microchip will benefit from new AI data center parts and components. This could begin in the September 2026 quarter, which may lead to “oversized revenue growth relative to the industry.”
Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions. It delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets.
9. Astera Labs, Inc. (NASDAQ:ALAB)
Number of Hedge Fund Holders: 57
Astera Labs, Inc. (NASDAQ:ALAB) is one of the 10 AI Stocks Making Waves on Wall Street. On January 14, RBC Capital analyst Srini Pajjuri initiated coverage of the stock with an Outperform rating and a price target of $225. The analyst sees robust retimer growth and Scorpio-P switch ramp for ALAB, which they believe should support near-term strength.
Astera Labs has underperformed in recent months amid concerns over next-generation scale-up networking standards and the potential for Google TPU progress affecting Astera’s key customers, Nvidia and Amazon.
Nevertheless, near term fundamentals remain strong on the back of core retimer growth and Scorpio-P switch ramps. The Scorpio-X scale-up switch remains on track for a 2026 ramp, which is a major multi-year opportunity even with lower Amazon Trainium volumes.
“Longer term, we see room for multiple scale-up standards and won’t rule out ALAB participating in Ethernet/ESU. We believe premium valuation is justified given 40% growth, $10–15B SAM, and 70%+ gross margins. Initiate at Outperform.”
Astera Labs, Inc. (NASDAQ:ALAB) is engaged in the design, manufacture, and sale of semiconductor-based connectivity solutions for cloud and AI infrastructure.
