The software market currently faces a bear market, with the S&P North American Technology Software Index down 24% since September 2025. Despite this, Wall Street analysts express optimism for AI software. They predict significant growth for companies like Datadog, a leader in observability software, with a potential 102% rise to $260 per share. Atlassian, known for its work management software, could see a 170% increase to $320 per share, highlighting strong confidence in their AI-driven potential.
Conversely, investor fears about AI disruption have caused several software stocks to fall, including Asure Software, Paycom, Doximity, SoundHound AI, and Upstart. The S&P 500 Information Technology Sector dropped nearly 3% in a broad sell-off. Doximity's shares fell 6.9% and are down 19.7% this year. These concerns were exacerbated when Chinese customs blocked Nvidia's H200 AI chips, adding to market worries about global tech trade and stability.
The demand for AI computing power remains robust. CIMG Inc. recently secured $2 million in new sales contracts for computing power equipment, directly linked to this growing demand. In a strategic move, V2X Inc. partnered with Amazon on January 29 to integrate Amazon's advanced warehouse automation and computer-vision AI models into government warehouses. This collaboration aims to boost efficiency and streamline logistics for government supply chains.
An "AI memory supercycle" is also underway, driving significant gains for memory chip makers. Demand from AI data centers far exceeds supply, creating an "unprecedented" memory chip shortage, which analysts expect to continue into 2027. Companies like Sandisk, Micron, Western Digital, and Seagate Technology are poised to benefit. Even major device makers such as Apple are feeling the impact, with CEO Tim Cook noting rising memory prices and the need to secure supply.
Teradyne, a maker of semiconductor testing equipment crucial for AI, saw its stock jump after a strong AI-driven earnings forecast, about 60% higher than anticipated. Eaton, a power management company, reported a combined electrical and aerospace backlog of $19.6 billion, growing 26%, with its electrical business being vital for AI expansion and data center construction. Meanwhile, Finnish startup Optivian secured $2 million in pre-seed funding to develop AI agents capable of replacing traditional sales teams, aiming to accelerate sales cycles and increase win rates. AI is also increasingly assisting Americans with personal finance, with 37% already using AI tools for budgeting and financial planning.
Key Takeaways
- Wall Street analysts predict Datadog stock could rise 102% to $260 and Atlassian stock 170% to $320, despite a bear market in software.
- Investor fears about AI disruption led to a broad sell-off in software stocks, including Doximity, Asure Software, Paycom, SoundHound AI, and Upstart.
- Chinese customs blocking Nvidia's H200 AI chips contributed to market concerns and a drop in Doximity's stock.
- V2X Inc. partnered with Amazon to bring advanced warehouse automation and computer-vision AI models to government warehouses.
- CIMG Inc. secured $2 million in new sales contracts for AI computing power equipment.
- Teradyne's stock soared due to a strong AI-driven earnings forecast, highlighting demand for semiconductor testing equipment.
- An "AI memory supercycle" is causing an unprecedented memory chip shortage, benefiting companies like Sandisk, Micron, Western Digital, and Seagate Technology, and impacting Apple's supply chain.
- Finnish startup Optivian raised $2 million in pre-seed funding to develop AI sales agents, aiming to speed up sales cycles by 20% and increase win rates by 15%.
- Eaton's electrical business is crucial for AI expansion, with a combined electrical and aerospace backlog growing to $19.6 billion, driven by data center construction.
- 37% of Americans currently use AI tools for personal financial planning, making guidance more accessible.
Analysts Predict Huge Gains for Datadog and Atlassian AI Stocks
The software market is currently in a bear market, with the S&P North American Technology Software Index down 24% since September 2025. However, some Wall Street analysts are optimistic about the future of AI software. They predict significant growth for Datadog and Atlassian. Datadog, a leader in observability software and AI for IT operations, could see its stock rise by 102% to $260. Atlassian, known for its work management software like Jira, might experience a 170% increase to $320 per share. These forecasts suggest strong potential for these AI-focused companies despite current market worries.
Wall Street Analysts See Big Upside for Datadog and Atlassian
The software market faces a bear market, with the S&P North American Technology Software Index dropping 24% since September 2025. Despite this, Wall Street analysts are positive about certain AI stocks. They expect Datadog and Atlassian to see triple-digit gains in the coming year. Datadog, a leader in observability software and AI for IT operations, has a target price of $260, suggesting a 102% increase. Atlassian, known for its work management software, has a target price of $320, implying a 170% rise. These predictions highlight strong confidence in these companies' AI-driven growth.
Top AI Software Stocks Could Soar Over 100 Percent Analysts Say
The software market is currently in a bear market, with the S&P North American Technology Software Index falling 24% since September 2025. However, Wall Street analysts remain optimistic about the future of AI software. They predict significant gains for Datadog and Atlassian in the next year. Datadog, a leader in observability software and AI for IT operations, is projected to rise 102% to $260 per share. Atlassian, a leader in work management software, could see a 170% increase to $320 per share. These forecasts suggest strong potential for these AI-focused companies despite current market worries.
AI Disruption Fears Cause Software Stocks to Drop
Several software stocks, including Asure Software, Paycom, Doximity, SoundHound AI, and Upstart, recently fell due to investor fears about AI disruption. This led to a broad sell-off, with the S&P 500 Information Technology Sector dropping almost 3%. Doximity, a healthcare software company, saw its shares fall 6.9% and is down 19.7% since the start of the year. Earlier, Doximity's stock also dropped when Chinese customs blocked Nvidia's H200 AI chips, adding to market concerns about a fragmented global tech order. Investors are reacting strongly to these developments, causing significant price movements in the market.
Software Stocks Decline Amid Investor Worries About AI
Fears about artificial intelligence disrupting the market caused several software stocks to fall, including Asure Software, Paycom, Doximity, SoundHound AI, and Upstart. The S&P 500 Information Technology Sector dropped nearly 3% in a broad sell-off. Doximity's shares fell 6.9% and are down 19.7% this year, trading well below its February 2025 high. This follows an earlier drop when Chinese authorities blocked Nvidia's H200 AI chips, raising concerns about global tech trade and market stability. Investors are showing a "basket-style reaction" by reducing exposure across the entire software segment.
V2X and Amazon Partner to Bring AI to Government Warehouses
V2X Inc. announced a new partnership with Amazon on January 29. This collaboration will bring Amazon's advanced warehouse automation and computer-vision AI models to government warehouses managed by V2X. The goal is to make operations more efficient and streamline workflows for government logistics and supply chains. This move aims to establish V2X as a leader in using cutting-edge technology for government contracts, which could lead to significant growth.
CIMG Secures 2 Million Dollars in AI Computing Contracts
CIMG Inc. recently announced that it signed new sales contracts for computing power equipment. These five contracts are worth about $2 million in total. The deals are directly linked to the growing demand for artificial intelligence computing. This shows CIMG is actively involved in providing the necessary equipment for AI development and operations.
Teradyne Stock Jumps on Strong AI-Driven Earnings Forecast
Teradyne's stock recently soared after the company released a very strong earnings forecast. This prediction was about 60% higher than what analysts expected. Teradyne makes equipment used to test semiconductors and circuits, which are crucial for artificial intelligence. The company believes that the growing demand for AI chips is a major reason for its positive outlook. This strong forecast, announced on Monday, February 2, 2026, shows how AI is boosting Teradyne's business.
Four Stocks Set to Win Big in AI Memory Supercycle
An "AI memory supercycle" is underway, causing memory chip makers' stocks to rise significantly. Demand from AI data centers is much higher than the available supply, leading to an "unprecedented" memory chip shortage. Analysts at William Blair predict this upcycle will continue into 2027. Mizuho analysts identified Sandisk, Micron, Western Digital, and Seagate Technology as four stocks poised to benefit greatly from this boom. These companies are seeing increased pricing and strong momentum due to AI. Even major device makers like Apple are feeling the impact, with CEO Tim Cook noting rising memory prices and a need to chase supply.
Finnish Startup Optivian Raises 2 Million Dollars for AI Sales Agents
Finnish startup Optivian recently secured $2 million in pre-seed funding to develop AI agents that can replace traditional sales teams. The company aims to change how businesses grow revenue by using intelligent systems to handle complex sales tasks. Optivian's platform removes non-customer-facing work, allowing human sales professionals to focus on building relationships. The founders created Optivian after experiencing sales bottlenecks in previous companies. Early tests show their AI agents can speed up sales cycles by 20% and increase win rates by 15%.
AI Tools Now Help Americans Manage Their Money
Artificial intelligence tools are increasingly helping Americans with their personal financial planning. A survey by Ipsos for CNBC found that 37% of Americans already use AI for their finances. These tools make financial guidance more accessible, especially for beginners or those with smaller portfolios, where traditional planners might be too expensive. AI platforms connect to users' bank accounts and credit cards to analyze spending, offer personalized budgeting, and provide insights. Popular examples include Betterment for investing, Monarch for overall financial tracking, and Cleo for daily money management and coaching.
Eaton Stock Holds Steady as AI Fuels Long-Term Growth Outlook
Eaton recently reported mixed fourth-quarter earnings, with revenue slightly missing estimates but earnings per share beating them. Despite this, the company's stock remained steady as investors focused on its strong long-term growth potential, especially in its electrical business. Eaton plans to spin off its mobility business by 2027 to concentrate on its growing electrical and aerospace markets. The electrical business is crucial for the expansion of artificial intelligence, with Eaton involved in 866 megaprojects and a construction backlog of 206 gigawatts for data centers. The company's combined electrical and aerospace backlog grew 26% to $19.6 billion, showing strong demand for its power management solutions.
Sources
- Software Bear Market: 2 AI Stocks to Buy Before They Soar 102% and 170%, According to Wall Street Analysts
- Software Bear Market: 2 AI Stocks to Buy Before They Soar 102% and 170%, According to Wall Street Analysts
- Software Bear Market: 2 AI Stocks to Buy Before They Soar 102% and 170%, According to Wall Street Analysts
- Asure Software, Paycom, Doximity, SoundHound AI, and Upstart Stocks Trade Down, What You Need To Know
- Asure Software, Paycom, Doximity, SoundHound AI, and Upstart Stocks Trade Down, What You Need To Know
- V2X (VVX) partners with Amazon for AI models on government warehouses
- Five CIMG contracts tie $2M to rising AI computing demand
- Teradyne’s stock soars after this ‘absolute blowout’ forecast that was fueled by AI
- 4 stocks are poised to be the big winners of an AI memory 'supercycle'
- Finnish Optivian secures $2.3M to build AI agents that replace entire sales teams
- AI-powered tools offer help with your financial planning
- Why we're looking past this AI play's mixed earnings results and ho-hum guidance
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