The artificial intelligence (AI) revolution, hailed as the most significant technological transformation in over four decades, is entering a decisive phase.
According to a recent research note from US investment bank Wedbush, 2025 marks the beginning of the "enterprise consumption phase," with the software sector poised to capitalise on the momentum established by hardware and cloud computing giants.
From chips to software: A new era in AI
The initial phase of this $2 trillion AI spending boom has been dominated by Nvidia, whose chips have been likened to "the new gold and oil".
Described as the Godfather of AI by Wedbush, NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) chief executive officer Jensen Huang has steered the company to an unassailable position in the AI chip market.
Meanwhile, cloud giants such as Microsoft Azure, Google Cloud Platform, and Amazon Web Services have laid the groundwork for generative AI adoption.
But 2025 ushers in a broader shift. “The AI Software era is now here,” Wedbush asserts, highlighting the burgeoning demand for generative AI tools and large language models (LLMs) across industries.
The brokerage identifies this as a defining moment for software firms, with the sector poised to capture value from the AI-driven Fourth Industrial Revolution.
Palantir: The "Messi of AI"
Wedbush singles out Palantir Technologies Inc (NYSE:PLTR) as a standout beneficiary of the software boom, dubbing the company the "Messi of AI."
With IT budgets expected to prioritise AI investment, Palantir is expanding its pipeline and deal flow, offering solutions that address critical industry challenges and enable data-driven decision-making.
“Palantir has been a major focus during the AI Revolution,” Wedbush notes, pointing to its marquee products and growing partner ecosystem.
The company’s AI platform (AIP) is attracting interest from enterprises seeking scalable, enterprise-ready generative AI tools.
Over the next 12 to 18 months, Palantir’s US commercial business is expected to see significant growth, positioning the company as a future Oracle-like force in enterprise software, the brokerage said.
Salesforce: AI monetisation takes centre stage
Salesforce Inc (NYSE:CRM, ETR:FOO) is another key player identified by Wedbush, with its Agentforce 2.0 initiative aimed at revolutionising digital labour.
Leveraging generative AI to enhance customer service and automate complex tasks, Salesforce is well-positioned to capture a share of what Wedbush describes as a $7 trillion digital labour market opportunity.
"Agentforce 2.0 is looking to enable AI to perform advanced actions for humans," Wedbush explains, noting the integration of trust layers to ensure reliability and security. The research projects that successful execution could add approximately $80 per share to Salesforce’s valuation in the next 12 to 18 months.
New names join the AI party
Beyond Palantir and Salesforce, other software vendors, including Oracle, Snowflake, MongoDB, and Elastic, are entering the AI fray.
Wedbush likens the current landscape to a party just starting to gain momentum.
“It’s still 10pm, and the party goes till 4am,” analysts quipped, alluding to the long runway for growth in the AI-driven software space.
The stakes for 2025 and beyond
The transition from hardware-driven to software-led AI innovation signals a new chapter in the tech bull market.
As enterprise adoption accelerates, companies that can deliver scalable, secure, and cost-effective AI solutions are poised to thrive. Wedbush underscores that this is no ordinary technological shift but part of a once-in-a-generation revolution, with the software sector at its heart.
For investors and industry stakeholders alike, 2025 represents a pivotal year.
With companies like Palantir and Salesforce setting the pace, the AI revolution is now firmly entrenched in the software domain, promising transformative impacts across the global economy.