Nvidia (NVDA) and other tech stocks will have a "very strong" Q2 earnings season and H2, driven by cloud and artificial intelligence spending, Wedbush said in a Wednesday note.

Chipmakers are racing to meet the demand for AI-optimized chips, with the number of AI workloads expected to grow between 25% and 35% through 2027, Wedbush analysts said.

The path to a $5 trillion market capitalization is "on the horizon" for Nvidia in 2026, with global demand drivers accelerating, the analysts said. "For every $1 spent on an Nvidia GPU chip there is a $8-$10 multiplier across the tech sector," they estimated.

Microsoft (MSFT) should have a "very strong" June quarter with its Azure and Intelligent Cloud offerings, as more than 15% of cloud services now include some form of AI, the analysts said, adding that software should outperform other subsectors of tech.

Palantir Technologies (PLTR) remains one of Wedbush's "top names to own" as its AI Platform strategy will become a key foundation for organizations implementing AI use cases across verticals, according to the note.

The adoption of Agentic AI features will grow among enterprises and consumers, the analysts said. Alphabet's (GOOG, GOOGL) Google and Amazon's (AMZN) AWS are working with companies to create custom multimodal AI agents, while Meta Platforms' (META) AI is approaching 1 billion monthly active users, and the Facebook parent is also working on AI agents for creators and businesses, they noted.

Wedbush said its top five tech picks for H2 are Nvidia, Meta, Microsoft, Palantir, and Tesla (TSLA).

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