Software Companies Set to Benefit from AI Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Source: Yahoo Finance
- Optimistic Industry Outlook: Nvidia CEO Jensen Huang stated at a tech trade show that AI will enhance software companies' products and services rather than replace them, creating new investment opportunities for the software sector amid current market downturns.
- Veeva Systems Growth: In Q1 of fiscal year 2027, Veeva Systems reported a 16% year-over-year revenue increase to $882.9 million, with adjusted EPS at $2.24, reflecting strong performance and demand in the life sciences sector.
- Adobe's Financial Stability: Adobe's revenue in Q2 of fiscal year 2026 rose 13% year-over-year to a record $6.62 billion, with adjusted EPS at $5.96, indicating robust fundamentals despite leadership changes affecting its stock performance.
- Impact of AI Tools: Adobe's AI innovations have driven a threefold increase in annual recurring revenue to over $500 million, demonstrating that ongoing investments in AI will support long-term growth and enhance its competitive position in the market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Amazon's Cloud Services Accelerate Growth Amid Market Volatility
- Cloud Revenue Growth: Amazon's first-quarter AWS revenue rose 28% year-over-year to $37.6 billion, marking its fastest growth in 15 quarters, indicating strong competitive positioning in the cloud market and expected to further boost overall company performance.
- AI-Driven Profit Enhancement: AWS's AI revenue has reached an annual run rate of $15 billion, with a backlog of $364 billion, demonstrating that investments in artificial intelligence are significantly enhancing profitability and driving overall operating margin to a record 13.1%.
- Capital Expenditure Plans: Amazon plans to invest approximately $200 billion by 2026, with $43.2 billion spent in the first quarter primarily on AWS and AI expansion, which has led to a substantial decline in free cash flow, yet management views this as a necessary investment to seize market opportunities.
- In-House Chip Design Advantage: Amazon's custom chips now run at an annual revenue rate exceeding $20 billion, up nearly 40% from the previous quarter, allowing the company to reduce reliance on external suppliers, which is expected to save tens of billions in capital expenditures while enhancing AWS's margins.
See More
AI-Driven Memory ETF Surges Amid Shortage
- ETF Performance: The Roundhill Memory ETF has surged 156% since its launch on April 2, 2026, driven by a memory shortage fueled by AI demand, making it an attractive option for investors.
- Low Investment Threshold: With a trading price around $72, a $100 investment allows for over 1.25 shares of the Roundhill Memory ETF, significantly lowering the barrier for entry into the memory market for small investors.
- Transparent Fee Structure: The ETF has an expense ratio of 0.65%, which, while higher than most index funds, remains reasonable compared to other thematic ETFs, prompting investors to weigh fees against potential returns.
- Risk Management: By focusing solely on memory companies, the Roundhill Memory ETF mitigates concentration risk associated with other semiconductor firms, making it a suitable choice for investors already holding major stocks like Nvidia, thus providing diversified investment opportunities.
See More
QQQ Fund Shows Strong Performance, Optimistic AI Investment Outlook
- Significant Annual Returns: As of June 18, 2026, the QQQ fund has risen 20.56% year-to-date and 40.01% over the past year, demonstrating strong market performance that attracts increased investor interest.
- Concentration in Top Holdings: The top three holdings, NVIDIA, Microsoft, and Apple, account for 25% of the fund's total assets, indicating that investors need to manage position sizes carefully to mitigate potential concentration risks and avoid impacts from individual stock volatility.
- Improving Macro Environment: The Fed funds rate has decreased to 3.75%, down 0.75 percentage points over the past 12 months, which enhances the present value of future earnings, providing a better valuation basis for growth stocks and further driving QQQ's growth potential.
- Long-Term Investment Value: With a staggering 591.13% return over the past decade, QQQ demonstrates its potential as a crucial component of retirement portfolios, especially in the current market environment, appealing to investors seeking stable growth.
See More
Analysis of Why Vanguard S&P 500 ETF is Popular
- Market Benchmark Advantage: The S&P 500 index includes companies with a market cap of at least $22.7 billion, and due to its stringent profitability requirements, it has historically favored growth companies, providing investors with stable returns and lower risk over time.
- ETF Size Growth: The Vanguard S&P 500 ETF has ballooned to $1.7 trillion in total net assets, making it the largest ETF globally, reflecting investors' strong recognition of its low cost and reliability, which further drives capital inflows into the market.
- Growth ETF Performance: The Vanguard S&P 500 Growth ETF has achieved an annualized return of 17.2% since inception, outperforming the S&P 500 ETF over the past decade, and while it carries higher risk, it is positioned to deliver significant capital appreciation during bull markets.
- Investor Confidence: Although the Vanguard S&P 500 Growth ETF was not recommended by The Motley Fool as a top investment choice currently, its long-term growth potential and market performance continue to attract significant investor interest, indicating a sustained market appetite for growth-oriented investments.
See More
Abbott's Q2 Earnings Preview and Growth Drivers
- Diversified Business Structure: Abbott operates across four major segments: medical devices, diagnostics, nutrition, and established pharmaceuticals, with Q1 2023 medical device revenue reaching $5.5 billion, accounting for about 50% of total sales, which has helped the company remain resilient in changing healthcare environments.
- Diabetes Care Growth: Abbott's FreeStyle Libre continuous glucose monitoring platform generated approximately $2 billion in Q1 sales, with over 7 million users globally, and as the number of diabetes patients is expected to exceed 850 million by 2050, Abbott has significant growth potential in this area.
- Cardiovascular Business Contribution: Abbott's cardiovascular segment generated about $578 million in Q1 revenue, and with an aging population, analysts expect this market to expand significantly over the next decade, with Abbott's MitraClip and TriClip products helping to capture this growing share.
- Stable Revenue Sources: Abbott's diagnostics and nutrition segments produced approximately $2.1 billion and $2 billion in Q1 sales, respectively, with brands like Ensure and Similac providing steady revenue streams that help offset fluctuations in other areas of the business.
See More
Home Depot Reports $41.8 Billion Revenue in Q1 2026
- Strong Revenue Performance: Home Depot reported $41.8 billion in revenue for Q1 2026 (ending May 3), solidifying its leadership in the home improvement market, which directly benefits investors through consistent income.
- Attractive Dividend Returns: The company pays a quarterly dividend of $2.33 per share, totaling $9.32 annually, requiring investors to hold 1,073 shares to generate $10,000 in yearly dividends, showcasing a 2.77% yield that significantly exceeds the S&P 500 index.
- Consistent Dividend Record: With 157 consecutive quarters of dividend payments, exceeding 39 years, Home Depot demonstrates a strong commitment to shareholders, appealing to market participants seeking reliable income streams.
- Macro Environment Challenges: Despite facing headwinds from high inflation and rising interest rates that have softened same-store sales trends, the company's ability to continue returning capital to investors indicates a robust financial position.
See More
Amazon's Cloud Services Accelerate Growth Amid Market Volatility
- Cloud Revenue Growth: Amazon's first-quarter AWS revenue rose 28% year-over-year to $37.6 billion, marking its fastest growth in 15 quarters, indicating strong competitive positioning in the cloud market and expected to further boost overall company performance.
- AI-Driven Profit Enhancement: AWS's AI revenue has reached an annual run rate of $15 billion, with a backlog of $364 billion, demonstrating that investments in artificial intelligence are significantly enhancing profitability and driving overall operating margin to a record 13.1%.
- Capital Expenditure Plans: Amazon plans to invest approximately $200 billion by 2026, with $43.2 billion spent in the first quarter primarily on AWS and AI expansion, which has led to a substantial decline in free cash flow, yet management views this as a necessary investment to seize market opportunities.
- In-House Chip Design Advantage: Amazon's custom chips now run at an annual revenue rate exceeding $20 billion, up nearly 40% from the previous quarter, allowing the company to reduce reliance on external suppliers, which is expected to save tens of billions in capital expenditures while enhancing AWS's margins.
See More
AI-Driven Memory ETF Surges Amid Shortage
- ETF Performance: The Roundhill Memory ETF has surged 156% since its launch on April 2, 2026, driven by a memory shortage fueled by AI demand, making it an attractive option for investors.
- Low Investment Threshold: With a trading price around $72, a $100 investment allows for over 1.25 shares of the Roundhill Memory ETF, significantly lowering the barrier for entry into the memory market for small investors.
- Transparent Fee Structure: The ETF has an expense ratio of 0.65%, which, while higher than most index funds, remains reasonable compared to other thematic ETFs, prompting investors to weigh fees against potential returns.
- Risk Management: By focusing solely on memory companies, the Roundhill Memory ETF mitigates concentration risk associated with other semiconductor firms, making it a suitable choice for investors already holding major stocks like Nvidia, thus providing diversified investment opportunities.
See More
QQQ Fund Shows Strong Performance, Optimistic AI Investment Outlook
- Significant Annual Returns: As of June 18, 2026, the QQQ fund has risen 20.56% year-to-date and 40.01% over the past year, demonstrating strong market performance that attracts increased investor interest.
- Concentration in Top Holdings: The top three holdings, NVIDIA, Microsoft, and Apple, account for 25% of the fund's total assets, indicating that investors need to manage position sizes carefully to mitigate potential concentration risks and avoid impacts from individual stock volatility.
- Improving Macro Environment: The Fed funds rate has decreased to 3.75%, down 0.75 percentage points over the past 12 months, which enhances the present value of future earnings, providing a better valuation basis for growth stocks and further driving QQQ's growth potential.
- Long-Term Investment Value: With a staggering 591.13% return over the past decade, QQQ demonstrates its potential as a crucial component of retirement portfolios, especially in the current market environment, appealing to investors seeking stable growth.
See More
Analysis of Why Vanguard S&P 500 ETF is Popular
- Market Benchmark Advantage: The S&P 500 index includes companies with a market cap of at least $22.7 billion, and due to its stringent profitability requirements, it has historically favored growth companies, providing investors with stable returns and lower risk over time.
- ETF Size Growth: The Vanguard S&P 500 ETF has ballooned to $1.7 trillion in total net assets, making it the largest ETF globally, reflecting investors' strong recognition of its low cost and reliability, which further drives capital inflows into the market.
- Growth ETF Performance: The Vanguard S&P 500 Growth ETF has achieved an annualized return of 17.2% since inception, outperforming the S&P 500 ETF over the past decade, and while it carries higher risk, it is positioned to deliver significant capital appreciation during bull markets.
- Investor Confidence: Although the Vanguard S&P 500 Growth ETF was not recommended by The Motley Fool as a top investment choice currently, its long-term growth potential and market performance continue to attract significant investor interest, indicating a sustained market appetite for growth-oriented investments.
See More
Abbott's Q2 Earnings Preview and Growth Drivers
- Diversified Business Structure: Abbott operates across four major segments: medical devices, diagnostics, nutrition, and established pharmaceuticals, with Q1 2023 medical device revenue reaching $5.5 billion, accounting for about 50% of total sales, which has helped the company remain resilient in changing healthcare environments.
- Diabetes Care Growth: Abbott's FreeStyle Libre continuous glucose monitoring platform generated approximately $2 billion in Q1 sales, with over 7 million users globally, and as the number of diabetes patients is expected to exceed 850 million by 2050, Abbott has significant growth potential in this area.
- Cardiovascular Business Contribution: Abbott's cardiovascular segment generated about $578 million in Q1 revenue, and with an aging population, analysts expect this market to expand significantly over the next decade, with Abbott's MitraClip and TriClip products helping to capture this growing share.
- Stable Revenue Sources: Abbott's diagnostics and nutrition segments produced approximately $2.1 billion and $2 billion in Q1 sales, respectively, with brands like Ensure and Similac providing steady revenue streams that help offset fluctuations in other areas of the business.
See More
Home Depot Reports $41.8 Billion Revenue in Q1 2026
- Strong Revenue Performance: Home Depot reported $41.8 billion in revenue for Q1 2026 (ending May 3), solidifying its leadership in the home improvement market, which directly benefits investors through consistent income.
- Attractive Dividend Returns: The company pays a quarterly dividend of $2.33 per share, totaling $9.32 annually, requiring investors to hold 1,073 shares to generate $10,000 in yearly dividends, showcasing a 2.77% yield that significantly exceeds the S&P 500 index.
- Consistent Dividend Record: With 157 consecutive quarters of dividend payments, exceeding 39 years, Home Depot demonstrates a strong commitment to shareholders, appealing to market participants seeking reliable income streams.
- Macro Environment Challenges: Despite facing headwinds from high inflation and rising interest rates that have softened same-store sales trends, the company's ability to continue returning capital to investors indicates a robust financial position.
See More
