A new outlook from Wedbush (IVES) projects tech stocks will rise more than 20% in 2026. The report, led by Dan Ives, suggests the AI boom will start to pay off in real ways across software, chips, and cloud tools. According to the team, next year will be a key inflection point for how investors view AI spending and profits.
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This shift comes as more companies move from testing AI to using it at scale. Wedbush believes this will spark broad gains across the sector.
Apple and Google May Join Forces on AI
One of the boldest calls is a potential AI deal between Apple (AAPL) and Alphabet (GOOGL). Wedbush thinks the two may team up on Google’s Gemini AI, building it into Apple’s products and services. That could mean a new AI subscription service tied into the iPhone.
If this happens, Wedbush says it would give Apple a clear AI plan. The firm also believes it could help drive Apple’s market value to $5 trillion in 2026.
Tesla’s Robotaxi Rollout
Elsewhere, Tesla (TSLA) is expected to launch robotaxi services in over 30 cities next year. Wedbush expects the company also to begin high-volume production of its “Cybercabs.” This would mark a major step toward real autonomous driving.
Wedbush has a base price target of $600 for Tesla, with a bull case of $800.
Microsoft, Oracle, and AI at Scale
Microsoft (MSFT) is expected to see strong demand for its AI cloud tools. Wedbush sees the company reaching its “sweet spot” as more firms build AI into everyday work. Microsoft is the firm’s top pick in cloud software.
Oracle (ORCL) is also expected to benefit. Wedbush says the company will convert a large AI backlog and meet its data center goals. The firm expects Oracle stock to reach $250 in 2026.
Cybersecurity and AI Infrastructure
Security remains a top theme. Wedbush names CrowdStrike (CRWD) and Palo Alto (PANW) as key stocks in a strong cybersecurity sector. As AI spreads, demand for secure tools is rising, and Wedbush expects more deals in this space.
Separately, the firm highlights Nebius (NBIS) as a likely AI infrastructure takeover target. Microsoft, Amazon (AMZN), or Google are seen as possible buyers.
Quantum and Chips Stay in Focus
Wedbush expects the U.S. government to take a direct stake in a quantum computing company. IonQ (IONQ) and Rigetti (RGTI) are seen as top picks, based on national security goals.
Nvidia (NVDA) is still the top AI chip supplier. Wedbush sees better access to China ahead and sets a bullish price target of $275. The team believes demand is still underpriced by the market.
Palantir’s Path to $1 Trillion
Finally, Wedbush expects Palantir Technologies (PLTR) to grow its commercial AI software footprint. The firm says Palantir is on track to become a key player in AI software, with a long-term valuation view of $1 trillion within three years.
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