2 ‘Resilient’ Software Stocks That Wall Street Thinks You Should Buy Now

The rapid rise of AI hyperscalers has shaken confidence across the enterprise software landscape, sparking fears that traditional platforms could be disrupted or commoditized as generative AI becomes more powerful and widely accessible. In recent months, those concerns have weighed heavily on software stocks, driving sharp pullbacks even among companies with long track records of growth, sticky customers, and recurring revenue models. For many investors, the question has shifted from how fast these businesses can grow to whether they can remain relevant at all in an AI-dominated world.

Wall Street analysts, however, are pushing back on the most bearish narratives. For example, BNP Paribas argues that some enterprise software leaders are far more resilient than the market gives them credit for. “We view our January survey results as cautionary for the software sector, reinforcing recent negative sentiment,” BNP Paribas analyst Stefan Slowinski said in a note. “Hyperscalers continue to be winners with relatively resilient spend scores reported for Microsoft, AWS, and GCP, and increasing demand for public cloud. SAP and ServiceNow stood out positively with improving demand.”