Wedbush projects a significant software boom powered by generative AI in 2025, with Oracle, Snowflake, and other companies at the forefront of the AI revolution.

Wedbush analysts, under the direction of Daniel Ives, believe that Snowflake and Oracle (ORCL) will be major participants in artificial intelligence (AI) software by 2025. Additionally, they identified businesses that show promise in the expanding AI field, such as Palantir (PLTR), Salesforce (CRM), MongoDB (MDB), and Elastic (ESTC).

This increase is being driven by the emergence of massive language models and generative AI. According to Ives, this change is a component of the "4th Industrial Revolution," and the AI software age represents a significant turning point for the IT sector. He compared artificial intelligence (AI) to "the new gold and oil" and highlighted how important Nvidia's (NVDA) processors are to the development of AI.

AI's early development was also aided by cloud service providers like Amazon Web Services (AMZN), Google (GOOGL), and Microsoft (MSFT).

Snowflake, Elastic, and MongoDB were rated as "Outperform" by Wedbush, with price targets of $190, $135, and $360, respectively. Snowflake had a difficult 2024, but by December, things had improved. As interest in AI's potential increased on Thursday morning, shares of Oracle, Salesforce, Elastic, and Snowflake all saw increases.