Wedbush's renowned tech analyst outlines a bullish roadmap for AI-driven market leaders
As 2025 winds down, Wedbush Securities' Dan Ives has released his highly anticipated Top 10 Tech Predictions for 2026, painting a wildly optimistic picture for the sector. For investors navigating the AI revolution, these predictions offer a clear blueprint for potential outperformance. Here's your actionable breakdown, complete with key stock tickers.
Wedbush
1. 20%+ Surge in Tech Stocks : The AI Derivatives Boom
Ives predicts a 20%+ surge in tech stocks as AI's "second, third, and fourth derivatives" materialize across software, semiconductors, and infrastructure. This isn't just about AI pure-plays—it's about AI-enabled transformation touching every corner of tech.
Investment Angle: Consider broad tech ETF exposure like $Invesco QQQ(QQQ)$ or $Technology Select Sector SPDR Fund(XLK)$ , but focus on individual names with clear AI monetization paths.
2. Tesla's Robotaxi Revolution
Ives forecasts $Tesla Motors(TSLA)$ launching robotaxis in 30+ cities in 2026, scaling Cybercab production and kicking off the "true autonomous era." His price targets: $600 base case, $800 bull case (implying 100%+ upside from current levels).
Tickers: TSLA
Caveat: This remains a high-conviction, high-risk bet on regulatory approval and FSD technology maturity.
3. Apple-Google AI Partnership
A formal AI partnership between Apple and Alphabet centered on Gemini could finally give Apple a "real AI strategy." Ives envisions a subscription service integrated into Apple's ecosystem, propelling Apple to a $5 trillion market cap.
Tickers: $Apple(AAPL)$ , $Alphabet(GOOGL)$ / $Alphabet(GOOG)$
Implication: This would be a defensive move for Apple and a major revenue win for Google's AI division.
4. Nebius: The Prime AI Infrastructure Takeover Target
Ives identifies $NEBIUS(NBIS)$ as the best AI infrastructure acquisition candidate for 2026, with Microsoft , Alphabet , and Amazon as likely buyers. Nebius provides AI-centric cloud infrastructure, making it a strategic asset.
Tickers: $Microsoft(MSFT)$ $Alphabet(GOOGL)$ $Amazon.com(AMZN)$ ,
Note: Nebius (NBIS) trades on NASDAQ but remains under the radar—a potential speculative play or simply a catalyst for the mega-cap buyers.
5. Cybersecurity: The AI Defense Boom
The cybersecurity sector is poised for massive outperformance, with M&A activity expected to heat up. Ives' favorite names: Crowdstrike and Palo Alto Networks .
Tickers: $CrowdStrike Holdings, Inc.(CRWD)$ , $Palo Alto Networks(PANW)$, $First Trust NASDAQ Cybersecurity ETF(CIBR)$ (ETF alternative)
Thesis: As AI threats grow, AI-powered defense becomes non-negotiable for enterprises.
6. Oracle's AI Backlog Conversion
Despite negative sentiment, Oracle (ORCL) is set to convert its massive AI RPO (Remaining Performance Obligations) backlog, hitting $250/share in 2026. Ives sees data center expansion as the key driver.
Ticker: $Oracle(ORCL)$
Bull Case: Oracle's cloud infrastructure for AI training is deeply undervalued by the Street.
7. Quantum Computing Gets a Government Backstop
Ives predicts the Trump Administration will make a strategic equity investment in a quantum company, citing national security concerns versus China. Top candidates: IonQ and Rigetti Computing .
Tickers: $IONQ Inc.(IONQ)$ , $Rigetti Computing(RGTI)$
Risk: Highly speculative; government involvement could be a double-edged sword.
8. Microsoft's Enterprise AI Sweet Spot
Microsoft (MSFT) is positioned as the "top outperforming cloud software name" in 2026. Azure's AI momentum and enterprise adoption of Copilot will accelerate as companies move from pilot programs to full-scale deployment.
Ticker: $Microsoft(MSFT)$
Strength: The most diversified AI revenue stream across cloud, productivity, and developer tools.
9. Nvidia's Underestimated Dominance
"The Godfather of AI" Jensen Huang continues leading Nvidia (NVDA) to dominate AI chips. Ives believes US-China trade negotiations will open further Chinese market access, and that Wall Street "continues to way underestimate demand." Bull case: $275/share.
Ticker: $NVIDIA(NVDA)$
Key: Supply chain expansion and the next-gen Rubin architecture could prove Ives right.
10. Palantir's Path to $1 Trillion
Palantir (PLTR) will expand its commercial AI platform (AIP) success, cementing itself as a software leader in the AI Revolution. Ives sees a $1 trillion valuation within 2-3 years (vs. ~$200 billion today).
Ticker: $Palantir Technologies Inc.(PLTR)$
Driver: Transition from government-dependent to commercial AI powerhouse.
Investor Takeaways & Risk Management
Core Holdings: MSFT, NVDA, AAPL, GOOGL, AMZN form the "AI Fab Five"—foundational bets on the ecosystem.
Tactical Plays: TSLA (high risk/reward), CRWD/PANW (secular growth), ORCL (sentiment reversal), PLTR (momentum).
Speculative: IONQ, RGTI, NBIS (only for risk-tolerant investors).
Risks to Watch: Regulatory delays (robotaxis), partnership fallout (Apple-Google), geopolitical tensions (China market access), and valuation compression if AI monetization disappoints.
Ives' 2026 playbook is unabashedly bullish, but selective. The common thread? AI isn't a bubble—it's a fundamental platform shift. Investors who position in the infrastructure and application layers stand to benefit most.
Disclaimer: Predictions are not guarantees. Do your own due diligence and consider position sizing appropriate to your risk tolerance. Wedbush may have investment banking relationships with companies mentioned.
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