Dan Ives Sees Overdone Software Sell-Off, Forecasts $650B AI Capex in 2026
Wedbush analyst Dan Ives reinstated Salesforce and ServiceNow, saying the enterprise software sell-off is overdone as platforms will integrate AI rather than be displaced. He predicts Microsoft, Alphabet, Amazon and Meta will invest $650 billion in AI capex in 2026, boosting inflows into semiconductor and cloud ETFs.
1. Ives Reinstates Software Names
Dan Ives reinstated Salesforce and ServiceNow to his core AI list, arguing the recent downturn in enterprise software is exaggerated. He believes entrenched ecosystems and integration costs will drive firms to embed AI into existing platforms rather than abandon subscription models.
2. Hyperscaler AI Capex Forecast
Ives projects hyperscalers led by Microsoft, Alphabet, Amazon and Meta will invest roughly $650 billion in AI infrastructure capex in 2026. This represents a major ramp in data center, server and GPU spending as firms build out next-generation compute capacity.
3. Implications for Microsoft and ETFs
The anticipated spending surge cements Microsoft’s role as a leading AI infrastructure provider and may drive asset flows into software, semiconductor and cloud ETFs. Investors seeking diversified exposure could favor funds focused on enterprise software ecosystems and hyperscaler-driven tech segments.