|
Feb 17, 2026
|
|
LONG
|
"Cybersecurity is now not 5 to 8%. You could argue from everything we're seeing, 20, 25% of now the potential budgets... I think is being mispriced, that AI is a headwind where in fact, I think it actually is going to change the view of the sector." Investors fear that AI tools (like Anthropic) will replace traditional software and security vendors. Ives argues the opposite: the deployment of AI use cases requires massive "end-to-end" security infrastructure, effectively tripling the addressable budget share for leaders like Palo Alto and CrowdStrike. He cites M&A activity (specifically mentioning a deal involving CyberArk and Palo Alto) as proof of this platform shift. LONG. Ives explicitly calls PANW a "double table pounder" and identifies CRWD and ZS as top picks that will benefit from this inflection point. The sector is currently "guilty until proven innocent" with negative sentiment; risk of earnings upsets (as seen previously with PANW); market skepticism regarding the timeline of AI monetization. |
CNBC
Cyber security is going to be a huge growth a...
|
|
Feb 11, 2026
|
|
LONG
|
"That's why my view is, like, Microsoft, Oracle... I think what we essentially are going through... is almost like a deep sea type moment in tech." Hyperscalers are engaging in an "arms race," spending nearly $1 trillion on CapEx. This spending is not a waste but a defensive moat ("digging a deeper moat"). Microsoft and Oracle are positioned as the primary infrastructure winners of this spend. LONG based on the "follow the CapEx" logic. Overspending on CapEx without immediate ROI leading to margin compression. |
Bloomberg Markets
Ives Still Sees Big Winners Despite Software ...
|
|
Feb 11, 2026
|
|
LONG
|
"And those derivatives, you could argue you're gonna go into energy, financials, health care as it plays out in terms of broadening market." Second-order thinking suggests that the AI trade isn't just about chips and software. The massive power requirements (Energy) and economic efficiency gains (Financials/Healthcare) will cause the "yellow brick road" of capital to flow into these sectors as the market broadens. LONG as a rotation/derivative play on the AI theme. Macroeconomic slowdowns affecting cyclical sectors like energy and financials regardless of AI adoption. |
Bloomberg Markets
Ives Still Sees Big Winners Despite Software ...
|
|
Feb 11, 2026
|
|
LONG
|
Ives calls the current software selloff the "most head scratching sell off... I've ever seen." He explicitly names ServiceNow (NOW), Mongo (MDB), Snowflake (SNOW), and Palantir (PLTR) as companies that will play "instrumental roles." The market fears AI (like Anthropic) will replace software (the "Sasspocalypse"). However, Ives argues the opposite: AI requires vast data and security infrastructure to function in enterprise. Therefore, these incumbents with "decades of data" will integrate AI to become incrementally bigger, making the current dip a "golden buying opportunity." LONG these specific software names as the "hearts and lungs" of AI use cases. AI startups (like the tax strategy example mentioned) successfully disrupting legacy pricing models faster than incumbents can adapt. |
Bloomberg Markets
Ives Still Sees Big Winners Despite Software ...
|
|
Feb 11, 2026
|
|
LONG
|
Ives calls the recent software selloff ("SaaS Apocalypse") a "knee-jerk" reaction. He notes hyperscalers are committing $650B+ to CapEx this year. The market is wrongly assuming AI models (Anthropic/OpenAI) will replace enterprise software. In reality, AI requires the "hearts and lungs" of established data layers (Salesforce, ServiceNow, Oracle) to function. Ives cites a multiplier effect: for every $1 spent on NVDA, $8-10 will eventually flow to software/infrastructure. LONG. Buy the dip in marquee software names and cloud infrastructure providers. Enterprise spending slowdowns or faster-than-expected displacement of legacy SaaS by AI agents. |
Bloomberg Markets
AI Winners vs Losers on Wall Street | Open In...
|
|
Feb 09, 2026
|
|
LONG
|
These companies represent the next wave of AI "use cases" following the hardware build-out. Ives lists these names as the leaders in the software phase of AI, following the initial GPU/Data Center phase. As the AI build-out progresses from buying chips to actually using applications, data analytics and management platforms become critical. He sees the wave moving from Palantir (PLTR) to Snowflake (SNOW) and MongoDB (MDB). N/A (General sector rotation thesis). High valuation multiples compared to legacy software. |
CNBC
Dan Ives: Software will be the heart and lung...
|
|
Feb 09, 2026
|
|
LONG
|
Cybersecurity is another sector unfairly punished by negative sentiment. Ives groups Palo Alto Networks (PANW) and CrowdStrike (CRWD) with Salesforce as names that are "dislocated" from their true opportunity. Similar to the enterprise software thesis, the market is underestimating the necessity of these tools in an AI-driven world. Ives views the current dip as a buying opportunity based on customer demand checks. Feedback from CTOs and CISOs (Chief Information Security Officers) indicates strong ongoing demand. Continued sector rotation out of high-multiple software names. |
CNBC
Dan Ives: Software will be the heart and lung...
|
|
Feb 09, 2026
|
|
LONG
|
Enterprise software giants are currently mispriced due to exaggerated fears of AI disruption. Ives has moved Salesforce (CRM) and ServiceNow (NOW) into his "AI 20" list. He notes Salesforce is trading at ~15x earnings, which he views as a massive dislocation. The market currently believes AI will "disintermediate" (replace) these companies. Ives argues the opposite: AI will be integrated *into* their stacks, driving 20-30% incremental revenue that is not currently factored into their stock prices. He views the sell-off as the "most disconnected call" of his career. Ives conducted "stress tests" by speaking to 40-50 CTOs and IT managers, confirming that these platforms remain essential to enterprise stacks. The market continues to view them as "guilty until proven innocent" regarding their ability to grow amidst AI competition. |
CNBC
Dan Ives: Software will be the heart and lung...
|
|
Feb 09, 2026
|
|
LONG
|
Microsoft remains the backbone of the AI revolution despite concerns over capital expenditure (Capex). Microsoft was downgraded by Melius (claiming Satya Nadella "lost the AI narrative"), but Ives predicts the stock will have a "5" or "6" in front of it ($500-$600) in the next 12-24 months. The AI revolution cannot succeed unless Microsoft succeeds because they own the enterprise entry point via Azure. While investors worry about massive spending (Capex) to catch up to Google/Amazon, Ives believes Microsoft won't need to spend as drastically as feared and has only monetized 5% of its base so far. Deep integration into enterprise backyards via Azure. Near-term sentiment is negative ("guilty until proven innocent") regarding free cash flow hits from spending. |
CNBC
Dan Ives: Software will be the heart and lung...
|