U.S. markets moved closer to record highs as easing inflation data revived investor confidence. A lower-than-expected CPI report fueled expectations for interest rate cuts and potential fiscal support, setting the stage for renewed momentum in technology stocks. Against this backdrop, Steven Orr, known as “BigBeat” and founder and CEO of Quasar Markets, outlined why quantum computing drives tech stocks heading into 2026.
Orr noted that the recent market rally reflects optimism around slowing price pressures, but he cautioned that not all technology names are positioned equally. Oracle shares rebounded roughly 7%, yet Orr expressed skepticism about the company’s long-term outlook. He argued that Oracle has struggled to fully align with emerging technology trends that are shaping the next investment cycle.
Instead, Orr highlighted Broadcom as a stronger opportunity. He pointed to Broadcom’s advanced chipset capabilities and its role in enabling next-generation computing infrastructure. Manufacturing strength within the United States, he said, will be a defining advantage as demand for specialized hardware continues to grow.
The discussion also underscored a broader transition within the technology sector. Artificial intelligence dominated investment themes throughout 2025, but Orr believes the next major inflection point is already forming. He expects quantum computing to become a primary driver of capital allocation in the years ahead, reinforcing why quantum computing drives tech stocks across multiple subsectors.
IBM emerged as a key beneficiary in this shift. Orr emphasized IBM’s decades-long investment in advanced computing, AI, and enterprise infrastructure. With quantum initiatives such as Nighthawk and a deep foundation in hardware development, IBM is positioned to lead as quantum applications move closer to commercial viability.
Orr also addressed the growing importance of cloud computing in shaping the technology landscape. He cited the multi-billion-dollar partnership between Palo Alto Networks and Google Cloud as a signal that mergers, acquisitions, and strategic alliances will accelerate. These deals are expected to strengthen security, scale cloud services, and unlock operational efficiencies.
Looking ahead, Orr suggested that improving consumer confidence and falling inflation could support a seasonal rally into early 2026. Expectations for a year-end market lift remain intact, with technology and small-cap stocks seen as potential outperformers if economic conditions stabilize.
Still, Orr acknowledged risks on the horizon. Job losses and labor market weakness remain areas to watch closely. Even so, he maintained a constructive outlook, arguing that innovation-led sectors tend to perform well once monetary conditions begin to ease.
As markets prepare for 2026, Orr’s analysis reinforces a central theme. Quantum computing drives tech stocks by reshaping hardware demand, cloud infrastructure, and long-term investment strategies. Companies with deep technical expertise and scalable platforms appear best positioned to benefit as the next wave of technological transformation unfolds.