Why Salesforce and ServiceNow could emerge as AI winners

Saying that artificial intelligence has created enormous opportunities for tech companies is an understatement. But amid the current uncertainty, it’s important for investors to do their homework to determine which companies will continue to benefit from the AI boom while others falter.

Dan Ives, a former technology analyst at Wedbush Securities, recently sat down with TheStreet’s Caroline Woods to explain why Salesforce and ServiceNow are among the companies best positioned to continue benefiting from the AI revolution, while other software companies may be in for more turbulence.

Don’t get us wrong; Ives remains bullish on the broader AI boom, pointing to strong cloud results and continued spending by tech giants as evidence that demand remains strong. However, he also recognizes that AI is disrupting traditional business models across industries, including software, cybersecurity, memory chips, and digital advertising.

Ives believes Salesforce and ServiceNow have an important advantage: established customer bases that afford them opportunities to introduce new AI products and generate additional revenue.

While recent volatility has rattled technology stocks, Ives believes investors should focus on companies that can turn their AI investments into sustainable revenue rather than selling everything simply because share prices have fallen.

Here’s why Ives believes Salesforce and ServiceNow could emerge as long-term AI winners, which other companies he considers vulnerable, and what investors should look out for as the AI boom continues.

Why Salesforce and ServiceNow may have an AI advantage

For Ives, one of the biggest advantages Salesforce and ServiceNow have is their “installed customer bases,” meaning the businesses already using their products.

Both companies provide software that businesses rely on every day, giving them an established audience for new AI features. Ives believes those existing customer relationships could make it easier to introduce AI tools and generate additional revenue.

I think install base is what separates companies, and they’re going to be able to monetize their AI platform. I believe Salesforce is one. They were late to the game, but they’re going to be able to monetize it. ServiceNow, same thing.Dan Ives, when asked why Salesforce and ServiceNow could be AI winners rather than victims

Ives’ point challenges the idea that the first company to introduce an AI product will necessarily be the most successful. A later entrant may still have an advantage if it can offer useful tools to a large, established customer base.

For Ives, Salesforce and ServiceNow are important barometers of whether enterprise software companies can successfully turn their AI investments into revenue.

But having a large customer base doesn’t guarantee success, either.

Ives identified Adobe and Intuit as two software companies he considers more vulnerable to AI disruption. He believes AI is cannibalizing parts of Adobe’s markets and suggested that the next six to nine months could reveal whether the company’s new leadership and strategy can improve its position.

How can investors tell if AI spending is paying off?

Ives looks beyond a company’s AI press releases to measurable results, including cloud growth, data-center construction, capital expenditures, and customer use cases.

Capital expenditures, often shortened to CapEx, are a company’s investments in long-term assets such as data centers and computing equipment. Cloud demand and growing customer adoption of AI applications could provide more concrete evidence that infrastructure spending is actually producing a return.

But timing matters. Ives said companies have roughly a six-month window to show that they can monetize AI as investor patience wears thin and credit spreads, which reflect the additional borrowing costs for riskier companies, widen.

While that timeframe is an estimate rather than a firm deadline, it reflects growing pressure on tech companies to show that their investments can generate revenue.

Ives also believes investors should monitor whether AI use cases continue to expand at Palantir and Snowflake, in addition to Salesforce and ServiceNow.

Those companies could provide important clues about whether the broader AI spending boom is translating into sustainable business opportunities.

Why chips, software & neoclouds carry different risks

Ives currently sees more upside in semiconductor stocks than software companies, although he expects software monetization to become a bigger story in 2027.

He named Palantir, Snowflake, MongoDB, and Datadog as software companies that could benefit from the continued AI buildout.

However, he sees greater risk in neoclouds, or newer cloud computing providers built around AI infrastructure.

Ives believes these companies would be particularly vulnerable if AI demand grows more slowly than expected. He anticipates a shakeout in the sector and prefers Nebius NBIS over CoreWeave CRWV, although he also expects CoreWeave to survive over the long term.

Oracle faces a different challenge: financing its AI ambitions without weakening the business. Ives removed Oracle from his “AI 30” list after concluding that staffing cuts and debt taken on to pursue the OpenAI opportunity could negatively affect its core operations.

After all, growing demand for AI infrastructure does not mean success is guaranteed. Companies must also manage their balance sheets, control costs, and maintain their current businesses.

The takeaway for AI investors

When evaluating AI stocks for your portfolio, consider whether you’re looking for long-term, buy-and-hold exposure to established AI leaders or more speculative positions tied to infrastructure demand.

Ives favors companies that can monetize AI through existing customers and measurable demand, rather than those relying on expectations of future growth.

Investors should also pay attention to upcoming earnings reports, particularly cloud growth, data-center investments, customer adoption of AI products, debt levels, and whether AI products are actually producing a return on investment.

Ultimately, Ives believes the AI revolution will create significant opportunities for investors — but not every company will emerge as a winner.

Sources

Dan Ives on Street Talk · watch the full segment

Cited segments:

• Ives said Salesforce and ServiceNow can monetize AI because of their installed customer bases. (3:48–4:50)
• Ives identified Adobe and Intuit as software companies that are relatively vulnerable to AI disruption. (2:41–3:44)
• Ives said companies have roughly a six-month window to demonstrate AI monetization. (17:05–17:23)
• Ives said he sees more upside in chips now and expects software monetization to become a larger story in 2027. (5:17–5:54)
• Ives said neoclouds are most vulnerable if AI demand does not materialize as quickly as expected, and he prefers Nebius to CoreWeave. (7:42–8:31)
• Ives removed Oracle from his AI 30 list over concerns about cuts, debt, and the possible effect on its current business. (6:36–7:40)

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This story was originally published November 3, 2026 at 12:34 PM.