The AI boom has led to significant investments in software firms, particularly those providing essential infrastructure for AI. While companies like OpenAI and Anthropic attract billions, many established software providers are struggling. For instance, Salesforce and Adobe have seen stock declines of 28% and 21%, respectively, as investors focus on infrastructure firms crucial for AI productivity. Snowflake stands out, boasting a 43% year-to-date increase and a nearly doubled market cap, thanks to its scalable cloud-native data warehouse capabilities. Oracle’s stock also surged following solid fiscal results and a major deal with OpenAI for computing power. Experts emphasize that effective data management is essential for maximizing AI investments, making infrastructure providers increasingly attractive. Despite challenges faced by large software companies like Salesforce and ServiceNow, analysts suggest it’s premature to dismiss their potential, especially as they lead discussions around Agentic AI. The dynamic landscape indicates ongoing investor interest in infrastructure amid the evolving AI ecosystem.
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