Artificial intelligence continues to transform the stock market, with notable gains in 2023 and 2024 leading into 2025. As some of the largest tech companies embrace this trend, analysts remain optimistic about the potential for significant upside in certain AI-related stocks moving into 2026. Specifically, three companies are highlighted for their expected growth, with price targets indicating potential increases of up to 88% by year-end.
Adobe is one company poised for a rebound, showing a 41% implied upside from current levels. Despite prior concerns surrounding the impact of AI on its core photo and video editing software, Adobe has demonstrated resilience through solid operating results. The company has successfully integrated AI into its offerings, leading to strong user adoption and revenue growth. Following the launch of its freemium software, Adobe Express, in 2021, the total number of monthly active users across its platforms has surged by over 15%. Analysts predict revenue growth of approximately 9%, with expectations for double-digit annual recurring revenue growth moving forward. Price targets from Jefferies and DA Davidson suggest a potential climb to $500 per share.
Atlassian presents an even greater opportunity, with an implied upside of 85%. The company, which specializes in enterprise software for project planning and collaboration, is in the process of transitioning its customers from on-premises installations to a cloud-based system. This strategic move, coupled with the integration of new AI functionalities, is driving rapid growth in its cloud revenue, which increased by 26% in the last quarter. The significant uptick in AI user adoption points to strong potential for growth in the future. Bernstein’s recent price target of $304 illustrates the bullish sentiment surrounding Atlassian, particularly given its forecasted annual revenue growth exceeding 20%.
Marvell Technology is similarly positioned for success, boasting an impressive 88% implied upside. Specializing in semiconductor technology, the company develops networking chips and custom AI accelerators, collaborating with major players like Microsoft and Amazon. Although recent reports indicated that Microsoft might explore partnerships with rival Broadcom for custom silicon, Marvell’s CEO has reassured investors that the company continues to hold its relationships with both Microsoft and Amazon. Strategic initiatives, such as the acquisition of Celestial AI, are expected to bolster growth in this sector. An analyst has raised the stock’s target price to $156, reflecting confidence in Marvell’s ongoing investments and vision within the AI and data center markets.
As investors look toward 2026, these three stocks showcase the potential of artificial intelligence not just as a current trend but as a burgeoning sector poised for remarkable growth in the coming years.
