Three AI Software Companies to Invest in by 2025, as Suggested by Dan Ives
In the world of Wall Street, few analysts are as widely followed as Dan Ives, who heads global technology research at Wedbush Securities. Known for his bullish outlook and frequent appearances on financial media outlets like CNBC and Bloomberg, Ives recently took to social media to share his top 10 AI picks for 2025. In this article, we'll explore three of his software selections and assess whether now is the right time to invest.
1. Palantir Technologies
It's no surprise that Palantir Technologies found a spot on Ives' list. The company's standout feature is its Artificial Intelligence Platform (AIP), which has been making waves in the private sector since its launch in April 2023. AIP has helped Palantir establish strong partnerships with industry giants like Oracle, Meta Platforms, Microsoft, Amazon, and Booz Allen Hamilton, focusing on integrating AIP across cloud infrastructures within the Department of Defense and other military-related agencies. This partnership strategy has enabled Palantir to accelerate its typically slow-moving government business.
While some may view Palantir as a bullish investment, the stock's valuation has become a point of contention. The company was the S&P 500's top performer last year, with shares skyrocketing 340%. Ives himself admits that the stock is currently expensive, making it questionable whether it's the right time to buy in.
2. Salesforce
Salesforce is synonymous with sales and marketing tools, but it's also expanded its presence into areas like data analytics and workplace productivity. In March 2023, during its latest earnings call, CEO Marc Benioff announced that agentic AI would be the company's next growth driver. This innovative approach leverages generative AI protocols and machine learning applications, allowing digital agents to operate independently and become "smarter" over time.
Benioff's Agentforce platform is already in use by industry titans like IBM, FedEx, and Accenture. Meanwhile, Microsoft's CoPilot offers the most prominent agentic AI solution, but with limited competition and increasing AI infrastructure spending, Ives remains bullish on Salesforce's ability to capture additional market share in the agentic AI space.
3. Snowflake
Data infrastructure company Snowflake joined the public market in 2020, near the same time as Palantir. Snowflake was met with rave reviews from investors, but its AI capabilities eventually came under scrutiny. Frank Slootman, the company's CEO, stepped down in 2023, leaving Snowflake to clarify its role in the AI landscape.
Despite the challenges it's faced, Snowflake is showing signs of recovery. Product revenue is growing at a rate of 29% year over year, and the company boasts a staggering net revenue retention (NRR) rate of 127%, indicating a growing number of customers not only remaining on the platform but also increasing their spending. Although Ives does not specifically comment on Snowflake's AI capabilities, he suggests that their core AI platform, Cortex, is still in its early stages of development.
With a solid growth trajectory, Snowflake appears to present an opportunity for investors, even with the challenges it has faced in the past.
As Wall Street's favorite AI experts weigh in on the future of tech, these three companies are worth watching closely. While Ives is bullish on each stock's long-term potential, investors should also consider the current market estimates and valuations to look for the right moment to enter the market.
- Investors looking for potential opportunities in the AI sector might want to consider Dan Ives' view on Salesforce's Agentforce platform. According to Ives, Salesforce's focus on agentic AI, which uses generative AI protocols and machine learning applications, could help the company capture more market share in this growing field.
- With a focus on finance and investing, it's essential to keep an eye on the stock market performance of companies like Palantir Technologies. Despite its strong growth, Ives acknowledges that the company's stock is currently expensive, which might make it a questionable investment for some investors.
