Corporate AI spending is proving remarkably resilient, even as broader enterprise tech budgets wobble under tariff pressure, according to a new memo from Wedbush Securities.
Some capital-expenditure fears are unwarranted, Wedbush says, with AI and software spending a "safety blanket"
Corporate AI spending is proving remarkably resilient, even as broader enterprise tech budgets wobble under tariff pressure, according to a new memo from Wedbush Securities.
The firm said Thursday that AI now accounts for roughly 15% of enterprise IT budgets and is “strategically coveted” by CIOs — a priority area they’re defending, even as lower-tier projects get pushed or paused.
“The good news is that we are still seeing very firm [capital-expenditure] intentions for 2025 as this AI Revolution is upon us and the use case enterprise phase is accelerating in many large scale AI strategic deployments,” the analysts wrote.
In recent weeks, Wedbush spoke with dozens of CIOs, product leads, and enterprise decision-makers, many of whom described cloud and AI projects as too strategically significant to delay. “The amount of planning, budget dollars, [and] strategic focus has already left the station,” the memo said. “Companies… are moving full steam.”
However, the pipeline remains shaky. About 25% of big-ticket deals are being delayed, and closure rates have become unpredictable.
Investors may need to treat this quarter as a “mulligan” for the sector — but Wedbush still sees upside. In addition to Microsoft, Google, and Amazon, the firm also highlighted Palantir $PLTR (PLTR), Pegasystems (PEGA), and IBM $IBM (IBM) as names likely to benefit from persistent enterprise AI demand.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.