- Palantir, Salesforce, Snowflake, MongoDB favoured
- AI monetisation to expand beyond chips in 2025
- Investors warned to watch economic risks
Analysts at Wedbush believe 2025 will be a year of significant growth for the software sector as the AI (artificial intelligence) revolution begins a new phase fuelled by enterprise adoption of generative AI and machine learning large language models.
The Wedbush team, led by managing director and senior equity research analyst Dan Ives, highlighted the transformative potential of AI-driven applications and identified the software market as a key beneficiary in the coming ‘fourth industrial revolution’.
The analysts emphasised that two standout companies, Palantir Technologies (PLTR:NASDAQ) and Salesforce (CRM:NYSE), are uniquely positioned to capitalise on this shift.
Palantir, whose stock surged 365% during 2024, is expected to continue expanding its deal pipeline and driving adoption of its enterprise-scale AI/ML solutions, the analysts wrote.
Wedbush forecasts robust growth for Palantir’s US commercial business over the next 12 to 18 months, predicting the company could evolve into a major player akin to Oracle (ORCL:NYSE) over the next decade.
MORE TO COME FROM SALESFORCE
Customer relationship management giant Salesforce, with its AI-focused platform AgentForce 2.0, is poised to transform the $7 trillion digital labour market. The company aims to enhance automation and reduce costs for businesses by integrating customer data with next-generation AI agents.
Analysts estimate this AI monetisation phase could add approximately $80 per share to Salesforce’s valuation in the next 12 to 18 months, pushing through the $400 mark. Salesforce stock looks set to end the year at around $335, having risen 31% during 2024.
Wedbush also mentioned other notable players benefiting from the AI wave, including Oracle, IBM (IBM:NYSE), Snowflake (SNOW:NYSE), MongoDB (MDB:NASDAQ), Elastic (ESTC:NYSE), and Pegasystems (PEGA:NASDAQ).
While Wedbush analysts remain optimistic about the sector’s growth potential, they highlight economic and technological risks, urging investors to consider these dynamics when making decisions.
