Bernstein analyst Mark Shmulik has spotlighted Amazon and Meta as the top large-cap technology stocks for 2026, following a year where both companies trailed behind the broader market in performance. Despite these setbacks, these tech giants are primed for significant growth, thanks to strategic investments in artificial intelligence and data infrastructure.
Amazon Gains Momentum with AI Supercomputer Launch
Amazon saw a modest rise of 12.8% in 2025, underperforming the S&P 500’s 19.4% growth. However, projections for 2026 are bright thanks to its revolutionary Project Rainier AI supercomputer. Launched in late 2025, Project Rainier, equipped with 500,000 Trainium2 chips, is designed to power hyperscale AI training operations. This marks a significant milestone for Amazon Web Services (AWS) and its competitiveness in the AI space.
Coupled with efficiency improvements, robotics adoption, and cost-cutting measures, Amazon’s retail segment is expected to see improved margins. Shmulik has reaffirmed a price target of $300 for Amazon shares, signaling a 21.7% upside from the current trading price of $248.05.
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Meta’s AI-Driven Comeback
Meta also struggled in 2025, recording a modest 5.5% growth. However, the company remains a high-potential, high-risk pick, with Shmulik highlighting its ambitious capital expenditure plans directed at AI research and data center expansions, alongside pioneering advancements in superintelligence technologies.
Meta’s renewed focus on AI applications, even as a challenger to its competitors in large language models, indicates significant long-term growth opportunities. With a price target of $870, Bernstein forecasts a 35.5% upside for Meta, making it the most appealing catch-up trade within the Magnificent 7 tech stocks in 2026.
For consumers, Meta’s advancements in AI tech might translate into improved digital experiences, particularly in social platforms, augmented reality, and innovative advertising solutions.
Why These Stocks Are Worth Watching
Both Amazon and Meta are taking bold steps to invest in cutting-edge AI infrastructure and technology, making them key stocks to watch for investors looking to capitalize on the AI boom. As the world transitions into an AI-driven economy, these companies are positioning themselves as industry leaders poised for a transformative year in 2026.
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