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'Initial Wave Of AI Software Growth' To Spur Microsoft, Salesforce, Palantir, MongoDB, Oracle, Snowflake, And Elastic, Says Analyst

Published 15/04/2024, 14:04
© Reuters. 'Initial Wave Of AI Software Growth' To Spur Microsoft, Salesforce, Palantir, MongoDB, Oracle, Snowflake, And Elastic, Says Analyst

Benzinga - by Surbhi Jain, .

Wedbush Securities analyst Daniel Ives predicts a seismic shift in IT spending towards AI and related technologies. He estimates that such purchases will account for 8%-10% of IT budgets in 2024, a big jump from less than 1% in 2023.

Significant growth Trajectory Ahead

Microsoft CorpSalesforce IncPalantir Technologies IncMongoDB IncOracle CorpSnowflake IncElastic NV

Ives identifies this phenomenon as the “initial wave of AI software growth,” heralding a transformative period for the industry. Pioneers like Jensen Huang of Nvidia Corp (NASDAQ:NVDA) and Microsoft’s Satya Nadella spearheaded the first wave of the AI Revolution. Now, the ripple effects cascade across the tech landscape, offering substantial opportunities for companies positioned to capitalize on this burgeoning market.

Also Read: Nvidia Stock Trades At 13% Discount To Long-Term Average, Other AI Stocks At 52% Premium

Analyst Ratings & Price Targets

However, not all companies possess equal readiness to ride this wave. Snowflake, while maintaining a Neutral rating, holds a price target of $210 from Wedbush. The rating suggests a more cautious outlook on its potential to capitalize on the AI-driven market expansion.

As businesses increasingly recognize the transformative potential of AI technologies, experts anticipate a soaring demand for advanced software solutions. Companies like Palantir, Oracle, and Elastic, each rated Outperform by Wedbush Securities, position themselves to thrive in this evolving landscape.

The forecasted surge in AI software spending represents a monumental growth catalyst for the tech sector. It could propel companies across the board towards unprecedented opportunities for innovation and expansion.

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Read Next: Google’s Sundar Pichai Grapples With AI Mishaps, Nvidia ‘Caitlin Clark’ Of Stock Market And More: This Week In AI

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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