Prediction: This could become the world’s most valuable stock in 2026, according to one Wall Street analyst (and it’s not Nvidia) | The Motley Fool
AI has reshaped the technology landscape in recent years, fueling extraordinary gains for many of the world’s most valuable companies by market cap that are closely tied to this breakthrough. Nvidia has led the charge with its GPUs, initially built to render stunning game graphics but later recognized for powering AI workloads. Since AI surged about three years ago, Nvidia’s stock has surged on strong demand for its AI-focused hardware.
Yet, while Nvidia is likely to remain a dominant performer in 2026, one Wall Street analyst believes Apple could outpace the chipmaker over the next year.
The AI boom has spotlighted the so-called "Magnificent Seven"—a group of influential names with strong AI connections. Over the past three years, these stocks have generally outperformed the broader market. Nvidia has been the standout leader, with roughly a 975% rally to date, while Apple has risen about 95%. By comparison, the S&P 500 has gained around 73% over the same period.
Apple has been slower to leverage AI opportunities, but Wedbush analyst Dan Ives expects that to change in the coming year. He recently raised his price target on Apple to a street-high $350 from $320, while keeping an outperform (buy) rating. If realized, this would imply roughly a 26% upside from today’s price.
Two core ideas back Ives’s optimistic view for 2026. First, he believes we are at the cusp of Apple truly entering the AI revolution. Second, he sees Apple unveiling a comprehensive AI strategy, underscored by the company’s leadership shake-up in AI. Apple recently recruited Amar Subramanya, who has led AI initiatives at Microsoft and Google DeepMind, to direct Apple’s foundation models, ML research, and AI safety and evaluation. Subramanya spent over 16 years at Google, including heading Gemini engineering, Google’s flagship AI assistant, and briefly led Microsoft’s AI efforts. He will now oversee Apple’s AI initiatives and products.
Apple highlighted that Subramanya’s deep expertise in AI and ML research and product integration will be pivotal for ongoing innovation and future Apple Intelligence features.
One major opportunity for Apple lies with Siri, the iPhone’s voice assistant. Recent reports suggest Apple is negotiating with Google to refresh Siri’s AI capabilities, potentially jump-starting Apple’s broader AI agenda and reinvigorating iPhone interest.
Ives believes integrating AI into Apple’s product and service ecosystem could be a key catalyst for stock gains next year.
Today’s numbers show Apple trading around $277.99, with a small decline of about 0.28% on the session.
Underestimating the iPhone’s potential
Ives also argues that the iPhone’s potential is underestimated. Channel checks indicate iPhone 17 demand is solid, with the upcoming holiday season likely to buoy sales—Apple’s strongest quarter historically. An immense installed base of about 2.4 billion iOS devices (including roughly 1.5 billion iPhones) represents a built-in audience for new AI features and services. If Apple continues to innovate with AI, the stock could see meaningful upside, potentially boosting the share price by $75 to $100, according to Ives.
Apple vs. Nvidia: which path forward?
Ives still has an outperform rating on Nvidia, with a $210 price target, which would push Nvidia’s market cap toward $5.1 trillion if reached. In contrast, his $350 target for Apple in 2026 implies a market cap around $5.17 trillion—slightly ahead of Nvidia and possibly reshaping the leadership crown by market capitalization.
Of course, price targets are inherently speculative, and forecasting stock movements is uncertain. Still, Apple’s track record of defying expectations keeps the door open for a potential leadership shift in 2026. Notably, Apple’s forward multiple at roughly 33 is cheaper than Nvidia’s about 39, which could influence investor sentiment as the year unfolds.
Note from the Fool: Danny Vena, CPA, holds positions in Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia, and has disclosed positions in related options strategies. This information is intended for educational purposes and should not be construed as a personalized investment recommendation.
