January 01, 2026
Over the past couple of years, the AI sector has remained in the domination by just one stock: Nvidia (NVDA). The stock has skyrocketed as Wall Street analysts, such as those at Wedbush, spoke bullishly about Nvidia.
The reason one should invest in AI stocks like Nvidia is that a $10,000 investment in Nvidia three years ago would now be valued at £123,800.
As businesses are shifting from experimentation to execution, Wedbush has projected that the next phase of the AI boom will focus less on chip production and more on how AI technology is deployed.
This shift will likely favour platforms that integrate AI cloud infrastructure, enterprise software, and consumer ecosystems.
Dan Ives, Wedbush's veteran tech analyst, claims that investors are underestimating the magnitude of this transition. As we've stepped into 2026, he believes that while Nvidia remains the "godfather" of AI, several other stocks are poised to become major players.
Wedbush identified five AI stocks that offer promising returns on diverse opportunities within the market.
The list below comprises Wedbush’s top AI stocks you should buy in 2026, along with their latest price targets.
These stocks paint a picture of the AI evolution from hardware to platforms, indicating profitability. They span various tech verticals, including cloud infrastructure, enterprise software, cybersecurity, and consumer ecosystems, all set to benefit from the rising adoption of AI in 2026.
Microsoft is particularly noteworthy as the top AI stock to keep an eye on in 2026, which has transformed its Azure cloud service into an AI powerhouse. In its latest quarter, Microsoft reported £77.7 billion in sales, of which cloud revenues soared to £49.1 billion.
This mind-boggling performance highlights the company's focus on AI, making it a key player in AI's evolving landscape. As we go ahead in 2026, these stocks are set to dominate the AI market.