Wedbush is bullish on tech stocks: Q4 earnings season will send a "positive signal," and 2026 will be a turning point in the AI revolution.

Wedbush said that the technology company earnings season is likely to be a bullish signal for artificial intelligence, led by large technology companies. The analyst team, led by Dan Ives, stated: "Looking ahead to 2026, investors are both excited and concerned about the AI revolution. On one hand, this is the embryo of the Fourth Industrial Revolution...On the other hand, the trillions of dollars needed for the enterprise/consumer AI revolution also make investors uneasy." Analysts believe that both sides of the argument may be valid, ultimately indicating that 2026 will be a turning point for the AI revolution, with the crucial fourth quarter technology company earnings season on the horizon. Ives and his team stated: "We believe that led by large technology companies, tech stocks will perform strongly in the fourth quarter earnings season. According to our field research, cloud computing giants Microsoft Corporation (MSFT.US), Alphabet (GOOGL.US), and Amazon.com, Inc. (AMZN.US) have strong demand for AI companies this quarter." Analysts pointed out that some investors are still questioning the valuation and pace of tech spending trends, but they believe that Wall Street is still underestimating the scale of AI spending growth. Analysts expect tech stock earnings to once again confirm this view and are likely to increase positive capital spending before 2026. The analysts added that their optimistic view is that investors have not fully recognized the huge growth wave that the $3 trillion in AI technology and application spending by enterprises and governments over the next three years will bring. The analyst team stated: "We are currently only scratching the surface of the Fourth Industrial Revolution unfolding globally, led by tech giants such as NVIDIA Corporation (NVDA.US), Microsoft Corporation, AI leaders like Palantir (PLTR.US), Meta (META.US), Alphabet, and Amazon.com, Inc." Analysts believe that as the next phase of the AI revolution arrives, tech stocks will remain strong in 2026. The upcoming tech earnings season will further impact investors, with over $550 billion in capital spending gradually being implemented. The analysts stated that it is time for a wider range of the tech sector to participate in the AI revolution, as they believe that the applications of AI are experiencing explosive growth. The analysts added that the enterprise consumer stage will arrive early in 2026, when the LLM model will be fully launched, and the widespread adoption of generative AI will become a significant catalyst for the software industry, benefiting key companies like Snowflake (SNOW.US) and MongoDB (MDB.US) from this once-in-a-century Fourth Industrial Revolution. Ives and his team stated: "While the initial deployment of AI is mainly focused on NVIDIA Corporation chips and cloud service giants, it is important to note that we estimate for every $1 invested by NVIDIA Corporation, it generates an 8 to 10 times multiplier effect across the entire tech ecosystem. We believe that Microsoft Corporation is accelerating its AI strategy, and the Azure cloud platform will be a star in this."