Dan Ives, the prominent tech analyst at Wedbush Securities, has unveiled his top five artificial intelligence stock picks for 2026, notably omitting Nvidia from his recommendations, a decision that has surprised many. Ives, known for his bullish stance on Nvidia as it reached record highs throughout the year, is now directing his attention towards other mega-cap companies poised to benefit from the anticipated AI revolution. In a recent note to clients, he mentioned that AI is nearing an “inflection point” and identified five companies that he believes will take center stage as the industry evolves.
Among Ives’ selections is Microsoft, which he expects to perform robustly in 2025 with an anticipated gain of 16%. The analyst has set a price target of $625 for Microsoft, indicating a potential upside of 28%. Ives believes that Wall Street may be underestimating Microsoft’s growth prospects, particularly with its Azure cloud platform. He emphasized that while AI applications have expanded significantly in fiscal year 2025, he views fiscal year 2026 as a critical inflection point for Microsoft, as chief information officers prepare for broader AI deployments.
Next on the list is Apple, anticipated to see an 11% increase in stock value next year. With a price target of $350, this reflects an upside potential of 28%. Ives projects that Apple is on the verge of monetizing its AI products, which could add $75 to $100 per share. He underscored the urgency for Apple to leverage its substantial consumer base, noting that the company has 2.4 billion iOS devices in circulation, including 1.5 billion iPhones. Ives remarked, “The elephant in the room remains the invisible AI strategy,” suggesting that the company’s time to accelerate its AI efforts is now.
Tesla is another key player in Ives’ forecast, with a projected stock performance of 19% in 2025 and a price target of $600, representing a 32% upside. He posited that 2026 could be transformative for Tesla as the electric vehicle maker advances its AI and robotics initiatives. Ives highlighted the firm’s ongoing work on full self-driving technology and the upcoming production of the Cybercab, slated for April next year. He noted that Tesla could achieve a market cap of $2 trillion over the coming year, and in a more optimistic scenario, could reach $3 trillion by 2026.
Ives also included Palantir, predicting an astounding 140% performance increase next year. The Wedbush analyst has set a price target of $230 for Palantir, suggesting a 27% upside. He cited “unprecedented” demand for the company’s AI platform and expressed confidence that Palantir could evolve into a trillion-dollar market cap company as it maintains its influential role in the AI sector.
Lastly, CrowdStrike rounds out Ives’ picks with expectations for a 36% increase in stock value and a price target of $600, indicating a 26% upside. Ives has observed that CrowdStrike is gaining traction in its AI-related initiatives and expanding its market share. He conveyed strong optimism, stating, “CrowdStrike remains one of our favorite tech names,” and underscored the growth potential in cybersecurity as a critical beneficiary of the AI revolution.
Overall, Ives’ insights reflect a cautious optimism for AI-focused companies as the market approaches a decisive turning point. His focus on Microsoft, Apple, Tesla, Palantir, and CrowdStrike underscores a belief that these firms are strategically positioned to capitalize on emerging AI technologies and market demands in the near future. Investors will be keen to monitor how these predictions unfold as 2026 approaches, with implications that could resonate across the technology landscape.
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