With the midpoint of the fourth and final quarter of 2026 right up ahead, it’s time to start thinking about the kinds of stocks that might be worth pursuing (or at least adding to the watchlist) for the new year.
Undoubtedly, there’s been an increase in tech-related volatility this quarter, and I don’t think we’ve seen the last of it. If the AI stock earthquake drags into year’s end and into 2027, a growing number of opportunities are sure to arise in and out of the tech sector.
In this piece, we’ll look at a pair of names that might be worth watching very closely as stocks look to close out another profitable, but somewhat stomach-churning year.
Source: Getty Images
Enbridge
First, we have shares of pipeline darling Enbridge (TSX: ENB), which limped into the fourth quarter. Still down 15%, I think the dividend darling, which yields 5.8%, is a very worthy buy, whether or not you’re in it for the yield. In my view, the $150 billion midstream energy giant is at risk of being misunderstood amid a rise in uncertainties.
Yes, the firm faces pressures as interest rates rise, given how much it costs to build the critical infrastructure needed to transport energy across vast distances. While energy prices can spike and crash sharply, Enbridge is a name that I view as more utility-like and worth picking up, regardless of how producers up the stream are faring.
At the end of the day, producers need more transport infrastructure, and Enbridge is rising to the occasion. As it does, I expect the dividend to keep on growing as management continues to be generous to long-term shareholders, even when times grow more challenging.
Nvidia
It’s hard not to mention shares of Nvidia (NASDAQ: NVDA) after a brutal week. The GPU giant lost another 5.5% in Tuesday’s session, bringing shares down nearly 30% from peak levels. That’s a vicious crash for a company that used to be worth more than $5 trillion.
Now, with a $4 trillion market cap and serious negative momentum following Jensen Huang’s widely publicized affair with an alleged Chinese spy, questions linger as to whether Mr. Huang will remain Nvidia’s top boss and if there’s anyone who could do his job.
Indeed, there’s a ton of uncertainty facing a name, especially as AI stocks fade further and the AI buildout looks to hit more than just another roadbump. While Nvidia stock might be facing its most vicious bear market yet, I do think things could turn as the firm reports its next quarter in a week from now.
Somehow, I feel earnings, even if they’re good, might not move the needle as Anthropic’s IPO lands and investors look to deploy capital from a former AI titan to another. For now, I view Nvidia as a worthy buy on weakness, but I do acknowledge things could get far worse before the year’s close. As a name to hold through 2027, though, I think a 30% (and counting) bearish implosion takes quite a bit of risk off the table.
