Big tech firms are poised to extend their rally following a strong earnings season and continued momentum in artificial intelligence spending, according to Wedbush analysts, who pointed to accelerating enterprise adoption and sustained demand across chips, cloud infrastructure, software and cybersecurity.
Wedbush wrote that recent checks across Asia supply chains and conversations with AI cloud and hyperscaler partners have increased the firm’s bullishness heading into the coming months, with Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)’s upcoming earnings report viewed as another potential catalyst for the sector.
The firm wrote that the demand and supply imbalance surrounding Nvidia’s Blackwell and Rubin AI chips remains “overwhelming bullish,” while enterprise AI projects tied to Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG)’s Google and Amazon.com Inc (NASDAQ:AMZN) cloud platforms continue to accelerate.
Wedbush also pointed to strong results from Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) as further evidence of robust AI infrastructure demand, alongside growing activity in software and enterprise AI use cases involving companies such as Palantir Technologies Inc (NYSE:PLTR), Datadog Inc (NASDAQ:DDOG), Snowflake Inc (NYSE:SNOW) and ServiceNow Inc (NYSE:NOW, XETRA:4S0).
“Overall this earnings season has been a ‘wake up call’ for the tech skeptics on the sideline of the AI Revolution,” the analysts wrote.
The firm argued that the next phase of AI monetization is only beginning and that investors are underestimating the pace of cloud growth and AI-related deal conversion for Microsoft Azure and Amazon Web Services over the next year.
Wedbush wrote that recent data points from Palantir, Datadog and Innodata Inc. (NASDAQ:INOD) suggest “the tidal wave of use case driven demand is on the horizon,” particularly as enterprises increasingly move from experimentation to broader deployment of AI tools and agents.
The analysts forecast that technology stocks could rise another 10% to 12% by year-end as investors move past concerns that advances from companies such as Anthropic could undermine established software and cloud players.
Wedbush described the “software doomsday Anthropic narrative” as “a fictional tale for many of the entrenched software/hyperscalers over the coming years.”
According to the firm, customer and chief information officer conversations continue to point toward rapid AI adoption, with enterprises now focused on launching department-level and company-wide AI use cases in the second half of 2026.
“We are seeing no cracks in AI demand on the chips/hardware or software front which gives us a bright green light to own the core tech winners into year-end,” the analysts wrote.
Wedbush was also constructive on cybersecurity stocks, arguing that fears over AI replacing security vendors remain overstated and that large language models from Anthropic and OpenAI (Unlisted:OPAI) are likely to increase cybersecurity spending rather than reduce it.
The firm wrote that growing deployment of AI agents is expanding the need for endpoint protection, identity governance, cloud security and automation tools as cyber increasingly becomes “the enforcement layer of AI, not a casualty of it.”
Wedbush highlighted CrowdStrike Holdings Inc (NASDAQ:CRWD), Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP), Zscaler Inc. (NASDAQ:ZS) and Rubrik as its preferred cybersecurity names.
