Dan Ives Says AI Adoption Set To Drive Growth In Enterprise Software: Report

• Ives said that AI is a structural driver that will expand spending across the enterprise software market. 
• On Monday, Ives added Salesforce and ServiceNow to his AI-focused stock watchlist after removing them in December.
• Ives added that he sees the current dip in software stock as a buying opportunity. 

Dan Ives, managing director at Wedbush Securities, reportedly stated that as artificial intelligence adoption increases, major enterprise software platforms are expected to see significant expansion. 

Speaking to Bloomberg TV, he noted that companies such as ServiceNow Inc. (NOW) and Salesforce Inc. (CRM) will play a central role in enabling AI integration across businesses. 

“The heart and lungs of AI are going to be the use cases. So when you look at servicenow, salesforce, they are going to play instrumental roles in the AI revolution.”

-Dan Ives, Managing Director, Wedbush Securities

Enterprise Platforms Poised For Expansion

Ives said that AI is a structural driver that will expand spending across the enterprise software market. 

“ServiceNow will be incrementally bigger in the next 2 to 3 years than it is today because of AI,” he added, highlighting the long-term potential for the software sector as organizations invest in AI-driven workflows and automation.

On Monday, Ives added Salesforce and ServiceNow to his AI-focused stock watchlist after removing them in December.

Software Selloff And Opportunity 

Ives’ reassurance comes after shares of several software and tech companies dropped sharply last week amid investor concern that rapid advances in artificial intelligence might reduce the need for traditional subscription-based software.

The rapid decline began after Anthropic introduced Claude Cowork, an open-source tool that enables AI programs to complete full tasks independently.

Ives said that the impact of AI progress and investment extends far beyond. For every dollar spent on Nvidia (NVDA) processors, the ripple effect across software, cloud infrastructure, and support systems can create an $8 to $10 multiplier. This phenomenon could translate into a surge in enterprise software adoption, making current valuations a potential buying opportunity for long-term investors.

“I see it as a golden buying opportunity given the capex and spending,” he added.   

Also See: Unity Down 34% After Downbeat Guidance, But Retail Says Turnaround To Profitability And Revenue Growth Is Intact

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