Software still has a ‘huge role’ in AI buildout, Dan Ives explains

Yahoo Finance Video and Julie Hyman

Fri, February 13, 2026 at 3:48 AM GMT+9

In this video:

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Investors and markets (^DJI, ^IXIC, ^GSPC) are trying to survive the “Software-mageddon” as AI advancements place additional pressure on the software space.

Wedbush Securities managing director and global head of technology research Dan Ives sits down with Market Catalysts Host Julie Hyman at the 2026 Bitcoin Investor Week conference to address the real risks that AI poses for certain software developers and outlines which companies have the potential to outlast the woes.

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

But there is a case to be made that they could move faster because even now the AI is coding itself for example, right? I think that some of the latest models, they used the past models to code the new models. So if AI is coding itself and can in fact in effect like make its own infrastructure, then more quickly, isn’t wouldn’t that then be a risk, a more real risk to the software companies?

00:26 Speaker B

Yeah, but look, there are around the edges, there are risks and there are going to be software companies that disintermediated especially like, you know, one-trick ponies and some of the pure plays, but when I look at software, I truly believe a lot of it is really a timing. I mean, you know, we haven’t seen the monetization. A lot of the software companies are building out their stacks. A lot of companies are still in the build out the infrastructure, the database, you know, the data center phase.

00:52 Speaker B

I think when it comes to software, software is going to play a huge role in the build out. and I think when you look at the installed base players, the sales service now, is the work day, some of the others, it’s something where I think the market is mispricing what I believe is actually going to be a huge talent. I could argue a lot of these software companies, the service now is going to be exponentially bigger than it is today.

01:21 Speaker B

And also I’d say like, it also comes down to CEOs. Just like you don’t bet against Godfather of AI, Jensen, betting against Mcmott, it’s been the wrong move. But I so that that’s also my view relative to what we’re going to see in tech.

01:36 Speaker A

What what’s the difference between those who who are going to win and those who are not?

01:40 Speaker B

I think it’s one’s it’s install base, it’s moats. It’s ones that are aggressive on building the suites. Like if you look at like look at Crowdstrike. Crowdstrike, I think has been an innovator relative to what George built and from a stock perspective on AI. I think when the cash is doing on Powerto a Cyber Ark, but look, if they don’t do Cyber Ark, then that maybe would have made them vulnerable, but they did cyber so I think what’s going to you’re going to see a lot of acquisitions, you’re going to see a lot of offensive moves in terms of being aggressive.

02:08 Speaker B

But the ones that are on the treadmill at 2.5 speed, they’ll be disintermediated. And I think but you can’t be

02:13 Speaker A

And what does a moat even look like right now? Like what are there any real moats when the the AI can code new software and new apps and new whatever for you at the drop of a hat.

02:30 Speaker B

I think now on the edges, that’s obviously competitive, but the reality is the moats are these companies are they’re basically the hearts and lungs of operations from salesforce to Oracle to Microsoft, you go across software infrastructure. They’re not just going to get ripped apart relative to a tool that comes and is viewed as going to disrupt the sector.

02:59 Speaker B

That’s why I just view like the software sell off, we will look back just like a deep seek moment, the software sell off is a deep seek moment that I think we sit here 6, 12 months from now and be like, that was a golden bind opportunity.

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