Everyone keeps saying AI will destroy the $1.2 trillion software industry.
But what if that narrative is wrong?
Even as fear spreads across Wall Street, smart money is quietly moving back into enterprise software giants — and one overlooked AI infrastructure stock that could explode up to 80%+ in the next year.
Let’s break it down 👇
🤖 Is AI Really Replacing Enterprise Software?
Over the past year, stocks like:
Salesforce (CRM)
ServiceNow (NOW)
Workday (WDAY)
Snowflake (SNOW)
have been punished by investors.
Why?
Because of a growing belief that AI “vibe coding” will replace traditional enterprise software — where companies simply tell AI what they want, and software writes itself.
Even OpenAI’s Sam Altman and NVIDIA’s Jensen Huang have hinted at a future where AI “eats software.”
Sounds scary… but reality tells a different story.
❌ Why AI Won’t Replace Enterprise Software Anytime Soon
1️⃣ AI Still Hallucinates
AI models still make things up — and that’s unacceptable for Fortune 500 companies running mission-critical systems.
No enterprise is trusting AI without layers of human verification.
2️⃣ Software Companies Are Becoming AI Companies
Instead of being replaced, companies like Salesforce and ServiceNow are embedding AI agents directly into their platforms.
Salesforce’s Einstein AI
ServiceNow’s AI workflow automation
In the short term, this could boost revenue, not kill it.
📊 Valuation Reality Check: Who’s Actually Cheap?
Let’s compare valuations adjusted for growth (this is where most investors get it wrong).
🔹 Salesforce (CRM)
Sales growth: ~10%
Price-to-sales: ~5.7x
Strong profitability: 24% operating margin
Best value when adjusted for earnings growth
🔹 ServiceNow (NOW)
Sales growth: ~20%
Higher valuation, but faster growth
Strong AI integration
Slightly more expensive than CRM, but justified
🔹 Snowflake (SNOW)
Sales growth: ~28%
Earnings growth: ~45%
Still operating at a loss
Highest growth, highest risk, highest valuation
📌 Bottom line:
When you adjust for both sales growth and earnings growth, Salesforce (CRM) quietly emerges as the best risk-adjusted value — while Snowflake remains the high-growth bet.
⚡ The Real Wild Card: Super Micro Computer (SMCI)
While software stocks recover, one stock is hiding in plain sight.
🔥 Why SMCI Is So Controversial
Goldman Sachs keeps rating it “Sell”
Stock is extremely volatile
Margins are under pressure
Yet…
🚀 Why SMCI Could Prove Everyone Wrong
AI server market share jumped from 3.5% (2021) → over 22%
Revenue expected to hit $36B this year, $44B next year
65% revenue growth, far above the industry average
Still the preferred AI server supplier for Tier-2 cloud providers
Yes, margins dipped — because competition increased.
But once pricing stabilizes?
👉 Earnings are expected to rebound ~50% next year
📈 The Math Wall Street Ignores
SMCI currently trades at:
~0.47x forward price-to-sales
Cheaper than during the 2020 delisting scare
Far below its historical average
If investors re-rate SMCI to just 0.75x sales, the stock could reach:
💥 $55 per share
💥 ~90% upside potential
And with earnings coming up in early February — when delayed orders finally hit — momentum could return fast.
🧠 Smarter Way to Play This AI Trend (Without Picking Individual Stocks)
Not everyone wants to ride a roller-coaster stock like SMCI — and that’s okay.
If you want diversified exposure to AI, enterprise software, and tech leaders, ETFs are often the smarter move.
👉 That’s where moomoo comes in.
With moomoo, you can:
✅ Analyze AI & tech ETFs in real time
✅ Compare valuations, growth, and risk
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🔗 Start investing smarter with moomoo here:
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🚀 Final Takeaway
AI isn’t killing software.
It’s forcing weak companies out and making strong ones stronger.
📌 Salesforce offers value + profitability
📌 ServiceNow delivers steady AI-powered growth
📌 Snowflake is the high-growth risk play
📌 SMCI could be the sleeper hit of the AI infrastructure boom
The question isn’t “Is AI the future?”
The real question is:
Are you positioned to profit from it? 💰🔥
