Wedbush Highlights Microsoft and Nvidia in Year-End Tech Leaders List

Microsoft (MSFT, Financials) and Nvidia were named by Wedbush as top technology stocks heading into year-end, as the firm reiterated its view that the current surge in artificial intelligence investment is grounded in long-term demand rather than speculative excess. Analysts said AI-related deal flow at hyperscalers has increased by nearly 20% in recent weeks as enterprises move faster to roll out new use cases.

Wedbush expects Big Tech capital spending to reach $550 billion to $600 billion in 2026, driven by expanding AI infrastructure needs across governments, large corporations, and buyers in Asia and the Middle East. The firm said less than 5% of U.S. enterprises have fully adopted AI strategies, suggesting significant room for further deployment.

The analysts argued that concerns around circular financing involving OpenAI and Nvidia overlook the companies' foundational role in what they estimate will be a $3 trillion AI buildout over the coming years. They said ongoing developments in autonomy, robotics, and consumer AI show that the broader cycle remains in its early stages.