Palantir, Salesforce Named Best AI Software Plays For 2025: How Retail’s Positioned With These 2 Stocks

Wedbush analyst Daniel Ives said corporate AI spending is poised to ramp significantly within IT budgets in 2025.

Published: Dec 30, 2024, 9:21 AM IST

According to Wedbush analyst Daniel Ives, the artificial intelligence (AI) revolution, which started with Nvidia Corp. ($NVDA) and stalwart cloud/hyperscalers, will now spread into the broader software space. The analyst named Palantir Technologies, Inc. ($PLTR) and Salesforce, Inc. ($CRM) the best software companies to benefit from this trend.

The Global X Artificial Intelligence & Technology ETF ($AIQ) has gained about 27% for the year.

Wedbush also expects other well-positioned vendors such as Oracle Corp. ($ORCL), International Machines Corp. ($IBM), Snowflake, Inc. ($SNOW), MongoDB, Inc. ($MDB), Elastic N.V. ($ESTC) and Pegasystems, Inc. ($PEGA) to partake in the AI revolution.

Palantir

Ives said as corporate AI spending is poised to ramp significantly within IT budgets in 2025, Palantir is in a prime spot to continue expanding its pipeline/deal flow. The company provides more use cases to ‘’address critical problems across industries and empower data-driven decision-making with a comprehensive suite of AI/ML solutions,’’ the analyst said.

The expanding use cases for Palantir’s marquee products, according to the analyst, have fetched it a larger partner ecosystem with rapidly rising demand across the landscape for enterprise-scale and enterprise-ready generative AI.

‘’We believe Palantir has a credible path to morph into the next Oracle over the coming decade with AIP leading the way as many on the Street continue to be huge skeptics of the Messi of AI,’’ he added.

However, retail watchers think the stock is massively overvalued. A Stocktwits poll found that 44% of the respondents said Palantir is massively overvalued.

On Stocktwits, sentiment toward Palantir is ‘neutral’ (45/100) and message volume remained ‘low.’

PLTR sentiment and message volume December 29, 2024, as of 9:45 pm ET | Source: Stocktwits

Salesforce

Wedbush’s Ives said Salesforce is well-positioned to capture the fair share of market expansion as the AI monetization phase will likely catalyze the company’s growth over the next 12 to 18 months.

The analyst sees a $7 trillion opportunity ahead for the company.

He said, “With the goal of accelerating the path to building next-gen AI agents grounded in customer data to lower costs and increase automation for businesses, Agentforce 2.0 is looking to enable AI to perform advanced actions for humans with elevated trust layers built in for agents paving the way for a new era of digital labor.”

AI could add about $80 per share to the Salesforce story, he added.

Retail mood toward Salesforce stock is also ‘neutral’ (48/100), with the muted sentiment accompanied by a ‘low’ message volume.