Artificial intelligence alone should drive significant deal activity and stock growth in 2026, though investors and acquirors need to sift through the noise to find applications with actual promise. This year may see AI deals shift toward interoperability and physical AI.

Advisors and executives who spoke with Mergermarket’s technology, media and telecommunications (TMT) team expect AI to spur activity in 2026 in segments from fiber and observability to marketing and call centers.

Increased national security stakes are also likely to drive M&A for TMT in 2026, fueling a focus on defense tech and continued quantum technology investment, which may finally be at an inflection point. Plus, the Warner Bros battle is bringing media consolidation back into the spotlight.