As the AI trade wobbles, Ives pounds the table on Microsoft, Palantir, CrowdStrike, Apple

What happened

Yorkville Ives analyst Dan Ives argued that artificial intelligence remains an early-stage investment theme despite a difficult week for AI-related stocks. He said AI demand is beginning to translate into software bookings and revenue after a roughly two-year delay, while warning that the recent software sell-off was indiscriminate.

Confirmed

Global impact / market context

If AI demand increasingly turns into software bookings and revenue, software companies could gain sales after the delay Ives describes. That would support their business outlook, but the article also notes that not every software company is a good investment, so company results may diverge.

Analyst inference

The article frames the debate as a clash between fears of a “SaaS apocalypse,” meaning software companies could be displaced or weakened, and evidence Ives cites of demand converting into sales. He says recent concerns about ServiceNow and Fortinet revived those fears after six months of resistance.

Confirmed

What to watch

1. Watch whether software companies report bookings rising alongside AI-related revenue, since Ives says early booking improvements are arriving and revenue follows demand with a delay. Analyst inference
2. Track whether the AI-related annual recurring revenue share grows at software companies; annual recurring revenue is the yearly value of ongoing subscriptions, according to Ives. Analyst inference
3. Compare upcoming company revenue and bookings with management statements about AI demand to see whether the reported sales conversion supports Ives’s view of the sell-off. Analyst inference

Evidence

• seekingalpha.com