JPMorgan is betting on four technology stocks that can be winners in 2026. Tech stocks bolstered much of this year’s rally, but recent concerns about elevated valuations and the payoff of artificial intelligence has led to discernment among winners and losers in the sector. The S & P 500’s tech sector has surged 22.5% year to date, making it the top performing sector of the broad-market index. The tech-heavy Nasdaq Composite is also tracking to be the best performer of the three major U.S. stock indexes, with about 20.1% in gains this year. JPMorgan analyst Doug Anmuth believes that the AI theme will continue to “drive continued outperformance in Quality Growth, Momentum, & Mag 7 stocks,” but said in a recent note to clients that the trend will also lead to record crowding and concentration in the market. Anmuth said that broadening AI-related productivity gains remain underappreciated by investors. Google-parent Alphabet is the first overweight-rated stock on JPMorgan’s list. The firm’s $385 price target implies about 24.5% potential upside for the stock. Alphabet shares are up 63.4% year to date, making the stock the winner of the “Magnificent Seven.” Investors have piled into the name in recent weeks on enthusiasm about the company’s successful release of its Gemini 3 AI model , its image generation and editing model Nano Banana Pro and its latest custom silicon chip and growing Tensor Processing Unit (TPU) business. JPMorgan is bullish on the company’s “full-stack AI strategy” driven by these products. The firm also believes that strong search query growth driven by Google’s AI Overviews should help grow the company’s search and advertising business. Moreover, the stock could benefit from strong momentum in Youtube and Google One subscriptions, JPMorgan analysts said. Amazon is another top pick in JPMorgan’s internet coverage heading into next year. JPMorgan believes Amazon shares are trading at an attractive valuation, given that the stock is up just 3.1% this year — significantly underperforming the broader market. Amazon Web Services should see AI-powered growth, the firm said, expecting the company to double its gigawatt capacity by 2027 and see its Trainium3 chip drive 40% better performance on AI workloads compared to Trainium2. The firm’s $305 price target on Amazon implies the e-commerce stock can jump 34.8% from its latest close. Overweight-rated DoorDash and Spotify also made the cut. JPMorgan’s Anmuth expects DoorDash’s gross order value, or GOV, in the U.S. to grow at an 18% compound annual growth rate between 2025 and 2028 driven, partly, by higher monthly active users on the platform. DoorDash’s advertising potential is also in early innings compared to peers, he said. Spotify is also set to benefit from strong monthly active user growth and greater subscriber additions next year, Anmuth said. The streaming giant’s revenue should benefit from Spotify’s expanding verticals across music, podcasts, audiobook, video and other areas, according to the analyst.
