Investment analysts are projecting significant growth for select technology stocks in 2026, with an emphasis on the increasing monetization of artificial intelligence (AI). According to Dan Ives, an analyst at Wedbush Securities, this year is poised to be a crucial turning point for the AI sector, particularly in software solutions. Speaking on CNBC on December 20, Ives noted that the proliferation of AI applications in various products is driving optimism among investors.
Ives has identified the potential for large-cap tech stocks, particularly those referred to as the “Magnificent Seven,” to see gains exceeding 20% in the upcoming year. Stocks such as Microsoft and Google could experience increases of 30% to 40%. This optimism is partly rooted in a projected expenditure of between $3 trillion and $4 trillion over the next three to four years, marking what Ives describes as the beginning of a new phase in AI investment. He views the recent sell-off in major tech stocks as an opportune moment for investors to buy in.
Methodology Behind Stock Selection
To compile a list of stocks with the highest upside potential for 2026, a combination of resources including the Finviz stock screener, CNN, and Insider Monkey’s Q3 2025 hedge fund database was utilized. The criteria focused on stocks that analysts believe have over 50% upside potential. Each stock was ranked based on the number of hedge fund holders, providing a clearer picture of institutional interest.
Research indicates that mimicking the investment strategies of top hedge funds can lead to market outperformance. For instance, a quarterly newsletter has reportedly achieved a return of 427.7% since May 2014, significantly outperforming its benchmark by 264 percentage points.
Stocks Poised for Growth
1. **BioNTech SE (NASDAQ:BNTX)**
– *Analyst Upside Potential*: 53.64%
– *Number of Hedge Fund Holders*: 24
BioNTech recently concluded its acquisition of CureVac N.V., gaining a majority stake that allows it to integrate CureVac’s oncology and infectious disease pipeline. Analysts from H.C. Wainwright have assigned a Buy rating with a price target of $140, bolstered by promising Phase 2 trial results for a treatment targeting triple-negative breast cancer.
2. **IonQ, Inc. (NYSE:IONQ)**
– *Analyst Upside Potential*: 50.58%
– *Number of Hedge Fund Holders*: 30
IonQ has expanded its agreement with QuantumBasel, enhancing its contract’s value to over $60 million. Analysts are optimistic about the company’s sales growth potential, forecasting a doubling of sales from 2024 to 2025.
3. **Credo Technology Group Holding Ltd (NASDAQ:CRDO)**
– *Analyst Upside Potential*: 53.20%
– *Number of Hedge Fund Holders*: 56
Following a remarkable fiscal Q2 performance with a 272% year-over-year revenue increase, Credo’s outlook remains strong despite a minor dip in stock price. Analysts expect continued growth as the company expands its market reach.
4. **Nebius Group N.V. (NASDAQ:NBIS)**
– *Analyst Upside Potential*: 73.26%
– *Number of Hedge Fund Holders*: 65
Nebius has launched its latest AI Cloud version, enhancing its infrastructure to support developer needs and expand its market presence.
5. **Core Scientific Inc. (NASDAQ:CORZ)**
– *Analyst Upside Potential*: 69.87%
– *Number of Hedge Fund Holders*: 68
Despite a recent decline in stock value, analysts remain positive, citing robust growth prospects and a strong pipeline for high-performance computing infrastructure.
6. **Coinbase Global, Inc. (NASDAQ:COIN)**
– *Analyst Upside Potential*: 59.11%
– *Number of Hedge Fund Holders*: 73
Analysts have varying outlooks on Coinbase, with some expressing caution regarding its strategic execution amid a competitive crypto landscape.
7. **Coupang, Inc. (NYSE:CPNG)**
– *Analyst Upside Potential*: 57.33%
– *Number of Hedge Fund Holders*: 83
Following a data breach affecting a significant portion of South Korea’s population, analysts have adjusted their price targets but maintain a positive long-term outlook for the company.
8. **Roblox Corporation (NYSE:RBLX)**
– *Analyst Upside Potential*: 83.06%
– *Number of Hedge Fund Holders*: 90
Despite facing regulatory challenges in Russia, Roblox is actively seeking compliance to regain access to the market, which may bolster its stock value.
9. **Sea Limited (NYSE:SE)**
– *Analyst Upside Potential*: 60.70%
– *Number of Hedge Fund Holders*: 102
Analysts expect continued growth in the consumer internet sector, with Sea Limited’s diversified business model contributing to its strong performance.
10. **Oracle Corporation (NYSE:ORCL)**
– *Analyst Upside Potential*: 53.67%
– *Number of Hedge Fund Holders*: 122
Oracle’s potential partnership with TikTok is expected to enhance its cloud infrastructure revenue and provide a strategic foothold in the social media space.
As 2026 approaches, these stocks present compelling opportunities for investors looking to capitalize on the anticipated growth in technology and AI sectors.
