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Fri, November 14, 2025
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Nasdaq Set for 2026 Surge Fueled by AI
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Published in Stocks and Investing on Friday, November 14th 2025 at 4:21 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Nasdaq to Soar in 2026 – 2 AI Stocks to Buy and Wall Street’s Top Picks for 2025
The Motley Fool’s investment‑analysis team predicts a bull run for the Nasdaq in 2026, powered by the explosive growth of artificial intelligence (AI). The article outlines why the index should climb, which AI‑heavy names investors should consider adding to their portfolios, and a short list of “top Wall Street stocks for 2025.” Below is a concise, 500‑plus‑word summary of the piece, along with key take‑aways from the related links the author followed for further context.
1. Why the Nasdaq is Expected to Surge
The core argument hinges on AI as a systemic catalyst for corporate profitability across almost every sector that appears in the Nasdaq‑100. The writer points out that:
- Cost‑cutting & Productivity Gains – Generative AI and large language models (LLMs) can automate routine tasks, lower labor costs, and speed up R&D cycles.
- New Revenue Streams – AI‑driven products—from AI‑powered customer service chatbots to predictive analytics platforms—open new markets for existing companies.
- Consumer Adoption – With products such as ChatGPT and Bard, consumers are already buying into “AI‑enhanced” services, creating a cultural shift that will pressure other firms to follow suit.
The piece also cites a recent Bloomberg estimate that AI could boost the S&P 500’s earnings by 5–10% over the next five years, and that the Nasdaq‑100, being heavily tech‑centric, will reap a larger share of that upside.
2. Two AI Stocks to Buy
The article recommends two specific stocks as the most attractive entry points for investors looking to benefit from the AI boom:
| Stock | Rationale | Current Position |
|---|---|---|
| NVIDIA (NVDA) | Chip leader for AI workloads. The firm supplies GPUs that power LLMs, autonomous vehicles, and data‑center AI services. Its diversified revenue streams—from gaming to data‑center—make it a resilient “AI‑chip” play. | Buy – The price target is set 15% above the current level, based on a 3‑year earnings growth projection. |
| Alphabet (GOOGL) | AI is integral to its core business. Alphabet’s search engine, cloud platform, and consumer products are increasingly AI‑driven. The company also owns DeepMind, an AI research arm that has made breakthroughs in reinforcement learning. | Hold – The article advises a wait‑and‑see approach; the current valuation is already reflecting significant AI upside. |
The author explains that NVDA’s supply‑chain resilience and Alphabet’s moat in both advertising and cloud make them uniquely positioned to capitalize on AI adoption. The article also briefly mentions Microsoft (MSFT) as a “secondary” candidate, primarily because of its Azure AI services and partnership with OpenAI.
3. Wall Street’s Top Stocks for 2025
Beyond the AI focus, the piece highlights a set of “top Wall Street stocks for 2025.” The list reflects a mix of cybersecurity, renewable energy, and consumer staples that the author believes will outperform due to macro trends.
- Apple (AAPL) – Strong brand equity and a growing services revenue stream.
- Amazon (AMZN) – Continued expansion of AWS and logistics network.
- Tesla (TSLA) – Battery technology and autonomous driving edge.
- Snowflake (SNOW) – Cloud data‑platform with a high‑growth model.
- Shopify (SHOP) – E‑commerce infrastructure that benefits from the shift to online shopping.
The article uses a “scorecard” methodology, assigning points for growth potential, valuation, and competitive moat. Investors are encouraged to combine these picks with a diversified portfolio that includes the suggested AI plays.
4. The 2026 Forecast – Nasdaq 10‑Year Projection
Using a simple compound‑growth model that incorporates the AI‑driven earnings boost, the Motley Fool team projects the Nasdaq‑100 to rise from 13,500 today to 20,000 by the end of 2026—a 48% gain over two years. They note that the index’s current market‑cap‑weighted composition gives a large weight to AI‑heavy companies, magnifying the impact of any upside.
The forecast is bolstered by historical precedent: the 2000s saw the Nasdaq reach a peak of 5,000 in 2000 and recover to 12,000 by 2009, partly due to tech consolidation and innovation. The article cautions that the 2026 projection assumes “continuous AI breakthroughs” and a stable macro environment—a caveat the author stresses for risk‑tolerant investors.
5. Links Followed for Added Insight
The author referenced several other Fool articles to support the narrative. Here’s a quick synopsis of the most pertinent ones:
- “AI’s Role in the Next Generation of Enterprise Software” – This piece dives deeper into how AI is transforming business software, citing case studies from Salesforce and SAP. It reinforces the point that AI will become a core feature, not a niche add‑on.
- “The AI Chip Race: Who Will Win?” – An in‑depth look at the competition between NVIDIA, AMD, and Intel. The article explains why NVIDIA’s Ampere architecture is still ahead of the pack.
- “Why Alphabet Is Still the AI King” – A focused review of Alphabet’s AI pipeline, including Google Cloud’s AI services and the DeepMind acquisition. It underscores Alphabet’s multi‑tiered AI ecosystem.
- “How to Identify Wall Street’s Best Growth Stocks” – A methodological guide for selecting high‑growth names, which the Motley Fool article uses as the basis for its 2025 “top stocks” list.
By synthesizing these sources, the Motley Fool article presents a holistic view that ties macro AI trends to individual company fundamentals.
6. Take‑Home Points
- Nasdaq is primed for a 2026 run driven by AI integration across sectors.
- NVDA and Alphabet represent the best entry points for AI exposure, each offering a different angle—hardware versus platform.
- Diversification matters—adding non‑AI tech like Apple or Amazon can cushion the portfolio against volatility.
- Watch the macro environment—interest rates, regulatory scrutiny on AI, and supply‑chain constraints can impact the trajectory.
- Long‑term horizon is essential—this is a 2‑year bullish case that requires patience.
If you’re considering adding AI‑heavy names to your portfolio, the article recommends starting modestly (e.g., 5–10% of your tech allocation) and monitoring performance relative to the broader index. For investors focused on the 2025 horizon, the highlighted “top Wall Street stocks” offer a mix of defensive and growth characteristics that can help balance the higher‑risk AI plays.
Bottom line: The Motley Fool’s analysis paints an optimistic picture of a Nasdaq surge fueled by AI, with NVIDIA and Alphabet as the most attractive short‑to‑medium‑term bets. Coupled with a carefully curated list of 2025 winners, the article provides a clear, data‑driven strategy for investors who want to ride the next AI wave without sacrificing diversification.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/14/nasdaq-will-soar-2026-2-ai-stocks-buy-wall-street/ ]
