Markets have had a volatile start to 2026, as investors navigate a mix of geopolitical tensions, shifting interest rate expectations and renewed questions around global growth. Escalating conflict involving Iran has added further uncertainty to the outlook, pushing up energy prices and weighing on investor sentiment.
At the same time, pockets of stock markets that led gains in recent years have come under pressure, and we saw a major sell-off across software names as artificial intelligence (AI) disruption fears took hold. Against this more uncertain backdrop, market swings have picked up – creating both risks and opportunities for long‑term investors.
So, we’re looking at how our 5 shares to watch for 2026 are getting on.
This article isn’t personal advice. If you’re not sure an investment is right for you, seek advice. Investments and any income from them will rise and fall in value, so you could get back less than you invest.
Investing in an individual company isn’t right for everyone because if that company fails, you could lose your whole investment. If you cannot afford this, investing in a single company might not be right for you. You should make sure you understand the companies you’re investing in and their specific risks. You should also make sure any shares you own are part of a diversified portfolio.
Intuitive Surgical
Intuitive Surgical’s fourth quarter results saw it finishing 2025 with a flourish. However, this year’s guidance for 13-15% growth in the number of operations carried out using the flagship da Vinci platform was a fair clip below last year’s 18%. There are also some headwinds to be mindful of, including competition in China and slowing demand for certain procedures due to the success of anti-obesity drugs.
Management is known for being cautious, and although it’s never a given, we think guidance may improve as the year progresses. A full roll-out of the company’s most advanced platform presents an opportunity to upgrade existing users and win new customers in a large market where penetration remains low. New use cases, like heart surgery, are further expanding the prize on offer.
Intuitive Surgical’s lofty valuation reflects its leading position in an attractive market, but a lack of catalysts has seen sentiment wane so far this year. We still believe that the company’s strong growth prospects leave room for meaningful upside from here. However, geopolitical uncertainty could keep a lid on enthusiasm in the near term.
Marks & Spencer
Marks & Spencer (M&S) started 2026 on the front foot, with shares rising sharply before getting caught up in the broader market selloff and giving up all its year-to-date gains. The group’s third-quarter update back in January was positive, though, with total sales up 3.3% to £4.2bn, excluding the recent consolidation of Ocado Retail into the business.
Food sales remained a shining light over the festive season, rising 5.6% to £2.7bn. The uplift was driven by a healthy mix of price and volume growth as the group’s market share reached record levels.
The Fashion, Home and Beauty division took some shine off performance, with like-for-like sales down 2.9%. This division was hardest hit by last year’s cyber-attack, and progress continued to be held back by its longer-term impacts on inventory levels and data management. But operations were expected to return to normal by the end of March, so we’re optimistic that second-half profits can rebound above last year’s level.
M&S remains one of our preferred names in the retail sector, and its strong food proposition offers some resilience if inflation begins to tick higher in the coming months. The valuation looks undemanding, sitting below many of its peers. But competition in the space remains fierce, and there’s no guarantee operations will recover on management’s timeline.
Novo Nordisk
It’s been a tricky start to the year for Novo Nordisk. Downbeat guidance reflected the decision to compete more aggressively on price. We think this strategy has merit, but it adds pressure on Novo to start stabilising market share and delivering meaningful volume growth in the key US market for GLP-1 medicines (weight-loss drugs).
We’re encouraged by an extremely strong start for the pill version of Wegovy, and a pickup in prescription volumes for the GLP-1 class of drug. The likely launch of a competing oral candidate by arch-rival Eli Lilly in the coming months is something we’ll be watching closely.
Looking further out, disappointing clinical data for its next-generation weight-loss drug CagriSema has raised doubts about its commercial appeal. We think it’s a little early to write off this novel medicine and look forward to the results of more strictly controlled clinical trials in early 2027. Meanwhile, accelerated US approval of high-dose Wegovy gives the company a more immediate but somewhat limited commercial lever to pull on.
Market expansion, momentum in oral Wegovy, depth in the anti-obesity pipeline, and the potential for stronger enforcement against compounders mean that we still see scope for upside from here. However, the company’s record of market leadership is now under increasing scrutiny, with markets unlikely to be tolerant of further disappointments.
Nvidia
Nvidia’s investment case has continued to strengthen since the start of the year, supported by blockbuster fourth-quarter results and fresh medium-term guidance that points to an ever growing AI opportunity. Q4 revenue rose 73% year-on-year, as demand for AI compute shows little sign of slowing. Management also guided to around $78bn of revenue for the coming quarter, suggesting further acceleration in the near term.
More recently, Nvidia used its global technology conference keynote to extend its outlook through to 2027, now expecting to generate at least $1trn of revenue across 2025-2027. This is double its prior guidance for 2025-2026 and ahead of estimates. The company also confirmed that its next-generation Vera Rubin platform is now shipping to customers, reinforcing its strategy of rapidly evolving chip architectures that make it very hard to compete with.
We’ve also had recent reports that China sales could be back on the cards, offering a potential tailwind after a period of restricted access.
Nvidia remains our preferred name in the AI/tech space, and we see plenty of scope for upside. However, the market still needs convincing that Nvidia can fully deliver on its ambitious growth targets, with lingering concerns about the durability of AI infrastructure spending. That’s keeping a lid on the valuation for now.
RELX
RELX shares have been caught up in the broader selloff across software and data analytics names since the start of the year. Investors are questioning whether established information providers could see their competitive positions eroded by the rapid emergence of new AI tools. That shift in sentiment has weighed on the valuation, despite no sign of weakness in the underlying business.
Full-year results in February pointed to another year of steady execution, with underlying revenue growth of 7% and further margin expansion as RELX continues to shift its mix towards higher-value analytics and decision tools. Encouragingly, management remains confident in the outlook for 2026, guiding to another year of strong underlying growth.
The key debate centres less on near-term performance and more on longer-term positioning in an AI-driven world. While newer entrants promise disruption, RELX’s competitive moat is built on proprietary datasets embedded in customer workflows across insurance, legal, and scientific markets. In our view, RELX still appears far more like an AI winner than a casualty.
We remain supportive of the investment case from here but are also mindful that sentiment could take some time to recover and likely won’t return to previous highs.
Authors and/or connected parties hold shares in Nvidia and RELX.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss. Yields are variable and not guaranteed.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.
