Wedbush highlighted its top 10 tech stocks to own into the year-end, which include Microsoft (MSFT) and Nvidia (NVDA), while noting that “this is not an AI bubble.”
Analysts led by Daniel Ives said that in the last few weeks, despite all the AI bubble talk, they have seen nearly 20% of the AI-driven deal flow they are tracking in the field at the hyperscalers accelerated as end user enterprise customers are focused on driving and fast tracking use cases into 2026.
The analysts added that it is still early days in the “AI Revolution” as more enterprise customers and chief investment officers, or CIOs, discover the role AI will play in their respective organizations, and this is set to drive the next wave of AI strategic deployments.
“While Big Tech cap-ex is set to be in the $550 billion to $600 billion range for 2026 we now expect to see a tidal wave of AI related spending from governments, Global 2000 organizations, and massive spending from Asia/ Middle East region with US Big Tech front and center as beneficiaries,” said Ives and his team.
The analysts noted that this is not an AI bubble — given we have not even seen the consumer “AI Revolution” start yet; autonomous is just beginning; robotics is still in the lab and about to hit mainstream in the next few years; less than 5% of U.S. enterprises have truly gone down the AI strategic path; and globally the “AI Revolution” is just starting to play out.
“Circular financing concerns around OpenAI and Nvidia we believe is the wrong perspective as in our view Nvidia and OpenAI (OPENAI) are essentially playing a foundational role in the $3 trillion AI buildout set to be spent over the next few years putting stakes in the ground across the AI enterprise/consumer landscape…..this is the smart strategic game we loudly applaud as this AI Arms Race plays out globally despite near-term noise created by these poker moves,” said Ives and his team.
The analysts noted that they “firmly bullish on tech stocks into year-end and 2026 despite recent investor bearish fears.”
Wedbush’s top 10 tech stocks to own in the “AI Revolution.”
Microsoft: The analysts said the company is best positioned hyperscaler for AI enterprise deployments.
Palantir Technologies (PLTR): Wedbush said “AI use cases start and end with Karp & Co.”
Nvidia: The analysts said one chip in the world fueling the AI Revolution.
Advanced Micro Devices (AMD): Wedbush noted that the company is set to gain market share in the “AI Arms Race, compelling valuation.”
Tesla (TSLA): Autonomous and robotics future on the doorstep, according to Wedbush.
Apple (AAPL): The analysts said “consumer AI Revolution goes through Cupertino.”
Meta Platforms (META): “Way oversold on cap-ex concerns; early on consumer monetization,” according to the analysts.
Alphabet (GOOG) (GOOGL): “AI tailwinds just starting to play out; Gemini the real deal,” said Ives and his team.
Crowdstrike (CRWD): “One of the best cybersecurity AI plays in the market,” according to the analysts.
Palo Alto Networks (PANW): “Platformization strategy + AI = 2026 growth formula,” the analysts added.