Few trends have had a bigger impact on the stock market than artificial intelligence (AI). Some of the biggest tech companies tied to the trend continued to lead the stock market higher in 2025, even after producing phenomenal gains in 2023 and 2024. Many popular AI stocks appear quite expensive after posting strong growth for three straight years. But analysts still see plenty of upsides for a handful of companies riding the AI wave.
Here are three AI stocks with great upside in 2026, with select analysts' price targets suggesting as much as 88% upside for the year.
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1. Adobe (41% implied upside)
Adobe (ADBE 1.30%) stock has struggled in recent years, as many investors are concerned that AI will negatively impact its core photo and video editing software. Meanwhile, the company continues to produce solid operating results, steadily growing its top line through both customer acquisition and increased pricing. Both of those improving metrics are actually bolstered by Adobe's efforts to incorporate AI into its products.
The company has seen strong adoption of Adobe Express since launching the freemium software in 2021. It serves as an important funnel to its premium Creative Cloud package, as well as a source of revenue. Management says it saw "significant" MAU growth last quarter, fueled by new AI Assistant features for content creation and editing.
Overall, Adobe's entire portfolio of freemium offerings counts over 70 million users, and overall MAU growth across Acrobat, Creative Cloud, Express, and Firefly exceeded 15% last quarter.
NASDAQ: ADBE
Key Data Points
Management's outlook for 2026 called for just over 9% revenue growth, but digging deeper into Adobe's financial results suggests it could outperform that forecast. Annual recurring revenue for 2025 climbed 11.5%, and management said it will grow double digits in 2026. Remaining performance obligations climbed 12.8% year over year.
Two analysts from Jefferies and DA Davidson have both recently set a price target of $500 on Adobe shares. That represents about 41% upside from the stock price, as of this writing.
With Adobe's forward P/E sitting at less than 15, it has a lot of upside. Continued strong operating results could eventually turn investor sentiment and support multiple expansion while it grows earnings, leading to strong stock returns in 2026.
2. Atlassian (85% implied upside)
Atlassian (TEAM 0.68%) develops enterprise software to help businesses plan projects and collaborate effectively. While it initially focused on teams of software engineers, it has since expanded to general use, now serving over 300,000 customers and millions of monthly active users.
The company is currently migrating customers from being able to install its software on their own private data centers to using its cloud-based platform. The migration is going well, and integrating new AI features into the cloud platform has helped accelerate adoption. Management said it has over 3.5 million AI monthly active users, up from 2.3 million in the prior quarter. Cloud revenue climbed 26% last quarter, and remaining performance obligations climbed 42%, indicating a long runway of growth ahead.
NASDAQ: TEAM
Key Data Points
The data center business will officially cease operations in March 2029. That will enable Atlassian to focus exclusively on a single platform, reducing its overhead costs. It should also allow it to roll out new features or modules for its software more easily, as it doesn't have to worry about various data center configurations, giving it more opportunities to upsell customers.
Bernstein analyst Peter Weed put a $304 price target on the stock in mid-November after digesting the company's first-quarter earnings. That implies upside of about 85% from the stock price, as of this writing. Considering the rapid top-line growth exceeding 20% per year and the potential for margin expansion, there's a lot of potential for earnings growth going forward. Even at a forward P/E of approximately 32, the stock appears to have sufficient growth potential to justify the price.
3. Marvell Technology (88% implied upside)
Marvell Technology (MRVL 2.29%) is a semiconductor company specializing in networking chips and custom AI accelerators. For the latter, it collaborates closely with Microsoft and Amazon on their Maia, Trainium, and Inferentia chips. It also works with other hyperscalers on custom silicon solutions to make the most of the hardware in their data centers.
Shares of the stock took a hit recently when The Information reported Microsoft was exploring a partnership with Broadcom for custom chips. Microsoft is reportedly planning a significant increase in custom silicon purchases once it begins producing the Maia300 chip. Fubon Research said the tech giant plans to buy as much as $12 billion worth of the chip in calendar 2027. That represents a huge amount of potential business for Marvel, which brought in less than $8 billion over the last four quarters.
NASDAQ: MRVL
Key Data Points
So, a report that Microsoft might source chips from rival Broadcom is concerning for Marvell, but the truth is, Marvell was unlikely to maintain a monopoly over any hyperscaler's business. To that end, CEO Matt Murphy noted it hasn't lost any business from Microsoft, or Amazon for that matter. Marvell should be able to continue growing quickly thanks to its custom AI accelerator business through 2026 and beyond, as the trend toward custom silicon accelerates.
Evercore ISI analyst Mark Lipacis raised his price target on the stock to $156 earlier this month. That implies upside of about 88% from the stock's price, as of this writing. He views management's strategic moves, such as the recent acquisition of Celestial AI, and its position in custom AI and data center solutions, as keys to sustained growth.
At less than 30 times forward earnings, the stock looks attractive relative to its growth prospects.
