Oracle (ORCL, Financials) and Snowflake (SNOW, Financials) are positioned as key players in the artificial intelligence software sector for 2025, according to a recent analysis by Wedbush.
Originally driven by chip technology breakthroughs by NVIDIA (NVDA, Financials), Wedbush analyst Daniel Ives underlined the continuous $2 trillion tsunami of artificial intelligence expenditure. With generative AI and big language models driving corporate demand, this investment period has now shifted into a more general emphasis on software adoption. These changes will provide the software sector with major chances.
Supported by 29% year-over-year product sales increase, Snowflake is leveraging this momentum by adjusting its fiscal year 2025 revenue projection to $3.43 billion. Along with working with big cloud providers like Microsoft (MSFT, Financials), Google (GOOGL, Financials), and Amazon (AMZN, Financials), the company's innovationsSnowflake Cortex and Snowparkshowcase its strategic posture in the AI and data interoperability field.
With a late-year drop that Wedbush analysts see as a desirable starting position for investors, Oracle's stock performance in 2024 demonstrated sustained expansion. With a forward price-to-earnings ratio of 31.94x and estimated FY2025 earnings per share of $6.18, the business has a possible 13.6% upward potential.
With price goals set at $135 and $360 respectively, Elastic (ESTC, Financials) and MongoDB (MDB, Financials) both got "Outperform" ratings from Wedbush. Rising acceptance of AI-driven business solutions can help these organizations.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.