Key Points
- Wolfe Research named Nvidia its top AI pick for 2026, citing its relative underperformance and strong product cycle.
- Morgan Stanley is bullish on Microsoft’s ability to capture AI spending and raised its price target on ASML by 40%.
- Barclays upgraded Dell due to strong AI server orders and a recovery in its enterprise business.
- HSBC upgraded EssilorLuxottica, betting on the growth of the AI-powered smart glasses market.
It’s been a busy week for analyst ratings in the world of artificial intelligence. Here’s a look at some of the biggest calls from Wall Street’s top firms.
Wolfe Research has crowned Nvidia as its top AI stock for 2026. The firm argues that while Nvidia’s stock is up a solid 36% over the past year, it has actually underperformed some of its smaller AI-linked peers, leaving more room for growth. The analyst sees the ramp-up of Nvidia’s new Blackwell and Rubin chips as major catalysts and believes the company’s competitive moat is as strong as ever.
Morgan Stanley is sticking with Microsoft as a “Top Pick,” saying the company is in the “pole position” to capture a growing share of AI spending. A new survey of CIOs shows that 92% of them expect to use Microsoft’s generative AI products in the next year. The bank also raised its price target on Dutch chip equipment giant ASML by 40%, citing expectations of a huge earnings jump in 2027 as the AI build-out accelerates.
Barclays has upgraded Dell Technologies to “Overweight,” pointing to stronger-than-expected orders for the company’s AI servers. The bank is encouraged by the company’s ability to maintain decent operating margins in the competitive server market and also sees a recovery in the traditional enterprise server and storage business.
HSBC has upgraded the eyewear giant EssilorLuxottica to “Buy,” arguing that the faster-than-expected adoption of AI-powered smart glasses is creating a major new growth opportunity. The bank raised its estimate for the smart glasses market to $200 billion by 2040 and sees EssilorLuxottica, which partners with Meta on its Ray-Ban smart glasses, as a key beneficiary.
