Wall Street’s prominent tech analyst Dan Ives has unveiled his top five AI stock picks for 2026, notably excluding Nvidia despite his previous vocal support for the chip giant. The Wedbush Securities analyst believes artificial intelligence is approaching a critical “inflection point” next year, prompting a strategic shift in his recommendations toward mega-cap tech companies positioned to capitalize on AI’s expanding commercial applications.
Microsoft leads Ives’ 2026 AI stock selections with a $625 price target, representing 28% upside potential. The analyst identifies Microsoft as his favorite large-cap tech stock for the coming year, citing underestimated growth potential for Azure cloud services. Wedbush anticipates an “AI driven shift” at Microsoft, noting that “FY26 for Microsoft remains the true inflection year of AI growth as CIO lines build for deployments.” The stock has gained 16% in 2025.
Apple ranks second on the list with a $350 price target and 28% upside. Ives believes Apple will begin monetizing its AI products over the next few years, potentially adding $75 to $100 per share in value. With 2.4 billion iOS devices and 1.5 billion iPhones in its installed base, Wedbush sees massive untapped potential in what Ives calls Apple’s “invisible AI strategy.” The stock has risen 11% this year.
Tesla secures the third position with an ambitious $600 price target and 32% upside. Ives predicts 2026 could be a “monster year” for the EV manufacturer as it advances AI and robotics initiatives, particularly full self-driving technology and the Cybercab launching in April. Wedbush projects Tesla could reach a $2 trillion market cap, with a bull case scenario of $3 trillion by year-end 2026. Tesla shares have climbed 19% in 2025.
Palantir, the data analytics company, has been the standout performer with 140% gains in 2025. Ives assigns a $230 price target with 27% upside, highlighting “unprecedented” demand for Palantir’s Artificial Intelligence Platform. The analyst believes the company has “a golden path to become a trillion-dollar market cap company” as it remains at the forefront of the AI revolution.
CrowdStrike rounds out the top five with a $600 price target and 26% upside. The cybersecurity firm has gained 36% this year and is experiencing momentum in AI deals while expanding market share. Ives describes CrowdStrike as “one of our favorite tech names,” positioning cybersecurity as a “second/third derivative beneficiary of the AI Revolution.”
Key Quotes
While Nvidia remains in our top tech names into 2026, there are 5 AI-focused names that we believe will be front and center heading into 2026
Dan Ives of Wedbush Securities explains his strategic shift away from highlighting Nvidia, despite maintaining it as a strong holding, to focus on companies positioned for AI’s commercial inflection point in 2026.
While AI use cases built markedly in FY25, its clear FY26 for Microsoft remains the true inflection year of AI growth as CIO lines build for deployments
Ives explains why Microsoft tops his AI stock picks, emphasizing that 2026 will mark the transition from AI development to widespread enterprise deployment, particularly through Azure cloud services.
The elephant in the room remains the invisible AI strategy, with the biggest consumer installed base in the world of 2.4 billion iOS devices and 1.5 billion iPhones, the time is now for Apple to accelerate its AI efforts
The analyst highlights Apple’s untapped AI monetization potential, suggesting the company’s massive device ecosystem positions it uniquely to capitalize on consumer AI applications.
We believe Tesla could reach a $2 trillion market cap over the coming year and in a bull case scenario $3 trillion by the end of 2026
Ives makes a bold prediction for Tesla’s valuation growth, driven by advances in AI-powered autonomous driving technology and robotics initiatives like the Cybercab.
Our Take
Ives’ pivot away from emphasizing Nvidia reveals a crucial evolution in AI investing: the market is transitioning from rewarding infrastructure providers to favoring companies that can demonstrate tangible AI revenue streams. This shift reflects growing investor sophistication about AI economics—it’s no longer sufficient to simply enable AI; companies must show how they’re monetizing it.
The diverse nature of these picks is particularly instructive. From cloud platforms (Microsoft) to consumer devices (Apple), autonomous vehicles (Tesla), enterprise software (Palantir), and cybersecurity (CrowdStrike), Ives is betting on AI’s horizontal expansion across industries rather than vertical depth in any single sector. This diversification strategy suggests AI’s impact will be broad-based rather than concentrated.
The timing of this “inflection point” narrative matters immensely. If Ives is correct that 2026 marks AI’s commercial breakthrough, we’re witnessing the final window for businesses to establish competitive AI capabilities before market leaders pull decisively ahead.
Why This Matters
This analysis signals a significant shift in AI investment strategy as the technology transitions from infrastructure buildout to commercial deployment and monetization. Ives’ exclusion of Nvidia—the dominant AI chip manufacturer—suggests that 2026 will favor companies that can demonstrate direct revenue generation from AI applications rather than those supplying the underlying hardware.
The focus on software and platform companies reflects AI’s maturation from experimental technology to enterprise-ready solutions. Microsoft’s Azure, Apple’s device ecosystem, Palantir’s enterprise AI platform, and CrowdStrike’s AI-enhanced cybersecurity represent practical, revenue-generating AI implementations that businesses are actively purchasing.
The “inflection point” concept is particularly significant for investors and businesses alike. It suggests AI is moving beyond proof-of-concept phases into widespread commercial adoption, where return on investment becomes measurable and scalable. This transition will likely accelerate enterprise AI spending and create clearer winners and losers in the AI ecosystem. For businesses, this signals the urgency of AI adoption strategies, while workers should prepare for AI-enhanced tools becoming standard across industries.
Related Stories
- Nvidia CEO Jensen Huang Reveals Public Speaking Struggles Despite AI Success
- Microsoft’s Satya Nadella on OpenAI Partnership: Competition and Collaboration
- Big Tech’s 2025 AI Plans: Meta, Apple, Tesla, Google Unveil Roadmap
- Meta and Nvidia Billionaires’ Wealth Soars $152B in AI Boom
- Business Leaders Share Top 3 AI Workforce Predictions for 2025
Source: https://www.businessinsider.com/ai-stocks-to-buy-2026-tech-dan-ives-wedbush-2025-12