The era of AI software is coming, Wedbush is bullish on Palantir (PLTR.US) and Salesforce, Inc. (CRM.US) leading the AI revolution in 2025.

Wedbush Securities believes that the artificial intelligence revolution has firmly covered the software industry, as evidenced by recent performance and announcements from Palantir (PLTR. US) and Salesforce, Inc. (CRM. US). In the latest client report, Wedbush analyst Dan Ives emphasized the wide-ranging potential for artificial intelligence (AI) in the software industry. He noted, "We are at an inflection point where the broader software industry is gearing up to embrace AI technology. We see AI use cases rapidly expanding, with expectations for a peak in enterprise consumption by 2025. At that time, large language models (LLMs) will be widely used, and the true adoption of generative AI will become a key DRIVE for the software industry and its key participants to benefit from this once-in-a-lifetime Fourth Industrial Revolution, which will greatly propel technological advancements." Ives further asserted, "The AI software era has fully commenced. We firmly believe that in the upcoming 2025 AI revolution, Palantir and Salesforce, Inc. will continue to be the top-performing two software companies." Ives also mentioned other software companies that could benefit from the AI trend, including Oracle Corporation (ORCL.US), IBM Corp (IBM.US), Innodata (INOD.US), Snowflake (SNOW.US), MongoDB (MDB.US), Elastic (ESTC.US), and Pegasystems (PEGA.US). Despite Palantir's significant increase in valuation after releasing its latest performance and guidance, Ives believes that Wall Street still underestimates the impact of artificial intelligence on software. He wrote, "We believe Palantir is at the forefront of enterprise AI use cases and the multiplier effect on other tech areas is the beginning of a $2 trillion capital spending in the AI world over the next 3 years." "As more companies and governments begin to develop AI use cases, we believe that Wall Street still underestimates the impact of AI spending on the entire tech landscape. We think tech earnings season has answered many questions and calmed DeepSeek's anxiety (currently), although there will still be other unforeseen concerns in this AI buildout."