Wedbush analysts have expressed optimism for the technology sector in 2026, citing continued momentum from the ongoing "AI Revolution" amid rising adoption by consumers and enterprises.
The firm highlighted that AI infrastructure developments in 2025 are expected to generate “transformational monetization opportunities into 2026 and beyond.”
According to the analysts, approximately 20% of AI-driven deal flow tracked by Wedbush at major hyperscale technology providers has accelerated in recent months, as enterprise customers work to fast-track AI use cases.
“It is still very early days in the AI Revolution as more enterprise customers and CIOs discover the role AI will play in their respective organizations,” the analysts wrote, noting that this is expected to drive the next wave of AI deployments and adoption.
Wedbush projected that Big Tech capital expenditures will reach $550 billion to $600 billion in 2026. They also highlighted anticipated AI-related spending from governments, Global 2000 companies, and regions including Asia and the Middle East, with US technology firms positioned as primary beneficiaries.
They expect technology stocks to rise by another 20% in 2026, as autonomous systems, robotics, and AI use cases gain traction across both consumer and enterprise markets.
Addressing concerns about an AI bubble, Wedbush stated that fears are “overblown” and emphasized that the sector is far from a repeat of the late 1990s tech bubble.
They pointed to several factors that support their view. They wrote that the consumer AI revolution has not fully begun, autonomous technology is only emerging, robotics is still largely in laboratory stages, less than 5% of US enterprises have fully committed to strategic AI adoption, and globally the AI Revolution is still in its early stages.
The analysts concluded that the AI Revolution is “just beginning.”
“We believe tech stocks and the AI winners should be bought given our view this is Year 3 of what will be a 10-year cycle of this AI Revolution buildout with 2026 set to be an inflection point year for AI monetization,” they wrote.