JPMorgan is betting on four technology stocks that could be winners in 2026. Tech stocks have powered much of this year’s gains, but soaring valuations and recent concerns about the rewards of artificial intelligence are separating the sector’s winners from losers. The S&P 500’s tech sector is up 22.5% since the beginning of the year, making it the best-performing sector in the overall market index. The Nasdaq Composite Index, which has a high proportion of high-tech stocks, has also risen about 20.1% this year, making it the best performer among the three major U.S. stock indexes. JPMorgan analyst Doug Anmuth believes the AI theme will continue to “continue the outperformance of Quality Growth, Momentum and Mag7 stocks,” but said in a recent note to clients that this trend will also lead to record crowding and concentration in the market. Anmuth said the growth in AI-related productivity improvements remains undervalued by investors. Google’s parent company Alphabet became the first stock on JPMorgan’s list to be rated Overweight. The company’s price target of $385 suggests the stock could rise about 24.5%. Alphabet stock has risen 63.4% since the beginning of the year, making it a winner of the Magnificent Seven. Investors have flocked to the name in recent weeks due to enthusiasm for the successful release of the company’s Gemini 3 AI model, its image generation and editing model Nano Banana Pro, its latest custom silicon chips, and its growing Tensor Processing Unit (TPU) business. JPMorgan is bullish on the company’s “full stack AI strategy” driving these products. The company also believes the significant increase in search queries from Google’s AI Overviews should help grow its search and advertising business. Additionally, JPMorgan analysts said the stock could benefit from strong momentum in Youtube and Google One subscription numbers. Amazon is another top choice in JPMorgan’s internet coverage for next year. JPMorgan believes Amazon’s stock trades at an attractive valuation, given that it’s up just 3.1% since the beginning of the year, significantly underperforming the broader market. Amazon Web Services expects to grow with AI, the company said, predicting its gigawatt capacity will double by 2027 and its Trainium3 chips will deliver 40% better performance for AI workloads compared to Trainium2. The company’s $305 price target on Amazon suggests the e-commerce stock has a potential for 34.8% upside from its most recent closing price. DoorDash and Spotify, which are rated as overweight, also made the list. JPMorgan’s Anmas expects DoorDash’s gross order value (GOV) in the U.S. to grow at a compound annual growth rate of 18% from 2025 to 2028, driven in part by an increase in the platform’s monthly active users. DoorDash’s advertising potential is also at an early stage compared to its peers, he said. Spotify will also benefit from strong monthly active user growth and subscriber growth next year, Anmas said. The streaming giant’s revenue should benefit from Spotify’s expansion across music, podcasts, audiobooks, video and other areas, the analyst said.
