Microsoft Corp (NASDAQ:MSFT), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Apple Inc (NASDAQ:AAPL, XETRA:APC) and other major tech names are positioned to remain top performers into year-end, according to Wedbush analysts who argue the AI boom is far from peaking.
The analysts believe that fears of an AI bubble are misplaced, pointing instead to accelerating enterprise demand and an investment cycle still in its early stages.
“Over the last few weeks, despite all the AI bubble talk, we have seen approximately 20% of the AI-driven deal flow we 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,” they noted.
They described the adoption curve as early and said more enterprise customers and CIOs are now discovering the role AI will play in their respective organizations, which they expect will drive the next wave of massive AI strategic deployments.
The team also emphasized the scale of coming investment. They cited expectations for Big Tech capital expenditures to reach between $550 billion and $600 billion in 2026, alongside what they called “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.”
Wedbush pushed back on comparisons between today’s AI growth and the dot-com era, arguing that the sector is far from a bubble. The analysts wrote that this is not an AI bubble, pointing out that the consumer AI revolution has not yet begun, autonomous technology is only emerging, and robotics remains largely in the lab and is just starting to approach mainstream adoption.
They also highlighted that less than 5% of US enterprises have fully embraced AI strategically and that the global AI transformation is only beginning.
Further, the analysts rejected concerns about financial entanglements involving companies such as OpenAI and Nvidia.
“Circular financing concerns around OpenAI and Nvidia we believe is the wrong perspective as in our view Nvidia and 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,” they wrote.
“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.”
They characterized the current environment as “a 1996 Moment…and NOT a 1999 Bubble Moment,” emphasizing that they remain bullish on tech stocks into year-end and 2026.
Wedbush’s top tech picks
The analysts noted that several major technology companies are particularly well-positioned to benefit from the ongoing AI expansion.
They believe Microsoft Corp (NASDAQ:MSFT) stands out as the hyperscaler best equipped to drive enterprise AI deployments, while Palantir Technologies Inc (NYSE:PLTR)’s AI initiatives are closely tied to the strategic vision of its leadership.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), they noted, continues to play a central role in powering the AI revolution, providing a chip that underpins much of the sector’s growth, while Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) is poised to capture additional market share as competition intensifies in what Wedbush calls the AI Arms Race.
The firm also highlighted companies at the intersection of autonomous technology and consumer adoption. Tesla Inc (NASDAQ:TSLA) is positioned to capitalize on advances in both autonomy and robotics, and Apple Inc (NASDAQ:AAPL, XETRA:APC) remains a key gateway for the broader consumer AI shift.
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB), in the analysts’ view, is currently undervalued due to capital expenditure concerns but is early in monetizing its consumer-facing AI capabilities.
Alphabet Inc (NASDAQ:GOOG) is similarly well positioned, with AI tailwinds that are only beginning to emerge and a flagship Gemini platform the analysts called “the real deal.”
In cybersecurity, CrowdStrike Holdings Inc (NASDAQ:CRWD) is recognized as one of the most compelling AI plays, while Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) is expected to leverage its platform-based approach combined with AI to drive growth in 2026.