DA Davidson notes that while the much anticipated GPT-5 release by OpenAI prompted a 3%-10% decline across a broad set of the firm’s software coverage, he believes that many software companies are well positioned for the AI revolution. The firm adds that while the debate around LLMs moving into the application layer will continue, it is easier to believe that the software that organizes code and data, and then observes and secures it, will be needed even more as AI ramps up. DA Davidson is positive on Microsoft (MSFT), Snowflake (SNOW), Datadog (DDOG), and Jfrog (FROG).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on MSFT:
- Yacktman Asset Management LP Reduces Stake in Microsoft
- Suncoast Equity Management Reduces Stake in Microsoft
- First Eagle Investment Management Reduces Microsoft Stake
- AMD Stock Rallies on Plans to Power Microsoft’s Xbox Devices
- OpenAI Launches GPT-5, Putting AI Progress and Investor Optimism to the Test