February 2026 AI 30 Update
Software Sell-Off Looks Overdone as AI Spending Accelerates
Dan Ives and the Wedbush research team have added Salesforce and ServiceNow back to the IVES AI 30 while removing Roblox and Baidu. The change follows a sharp sell-off in software and reflects Wedbush’s view that the market is assigning too much weight to near-term AI disruption and not enough to the staying power of large enterprise software platforms.
The broader AI thesis remains unchanged. Wedbush continues to describe the current period as Year 3 of a 10-year AI buildout cycle, with 2026 shaping up as an inflection point year for AI spending. The note points to roughly $650 billion in Big Tech capex for 2026, along with additional spending from governments, Global 2000 companies, and the Asia and Middle East regions. In Wedbush’s view, AI remains a top priority for senior management teams and the next wave of enterprise deployments is still ahead.
IVES AI 30 Updates Additions to the IVES AI 30
- Salesforce (CRM): Added back to the list as Wedbush argues that the market is overlooking the value of Salesforce’s installed base and the company’s ability to monetize AI over time across more than 150,000 customers, including over 90% of the Fortune 500.
- ServiceNow (NOW): Added back to the list as Wedbush sees the recent share-price decline as disconnected from the company’s long-term role in enterprise AI. The note argues that AI should ultimately support existing implementations rather than replace them.
Removals from the IVES AI 30
- Roblox (RBLX): Removed from the IVES AI 30 in the latest rebalance.
- Baidu (BIDU): Removed from the IVES AI 30 in the latest rebalance.
Software Sell-Off Comes Back Into Focus
A central message in the note is that the software sell-off has become too severe. Wedbush acknowledges that AI creates real questions for software business models, especially around seat-based pricing, AI agents, and budget reallocation. The note also points to new tools from Anthropic and OpenClaw as factors contributing to investor concern. At the same time, Wedbush argues that the market is pricing in a worst-case scenario that does not reflect how enterprises actually manage data, software migrations, and core systems.
Wedbush’s position is that large enterprises are unlikely to dismantle decades of software infrastructure and move sensitive data into new environments quickly. That is the backdrop for restoring Salesforce and ServiceNow to the IVES AI 30. In both cases, the note frames the current weakness as a valuation and sentiment issue rather than evidence that these companies are falling out of the AI cycle.
Spending Still Drives the Bigger Picture
The software debate is unfolding against a much larger backdrop of accelerating AI investment. Wedbush says hyperscalers remain in the early innings of an AI-driven expansion, with Microsoft, Google, Amazon, and Meta committing more than $650 billion in AI capex in 2026. The note argues that this spending is not just about adding capacity. It is also shaping how cloud platforms are built, monetized, and defended over time.
That broader spending cycle continues to support the overall AI framework. Wedbush highlights continued strength across hyperscalers, semiconductors, software, cybersecurity, and physical AI, while maintaining that 2026 remains a key year for adoption and monetization.
Conclusion
The February update reflects a change in positioning within the IVES AI 30, not a change in the broader AI thesis. Wedbush is using the current software reset to bring Salesforce and ServiceNow back into the list while removing Roblox and Baidu. The message is straightforward: AI spending is still building, enterprise adoption is still early, and the market may be underestimating the role major software platforms can continue to play in the years ahead.
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