HSBC Analyst Advocates for AI Software Stocks
HSBC analyst Stephen Bersey suggests that 2026 will mark the start of significant monetization in AI software, asserting that the largest share of value lies in this sector rather than AI hardware. In a recent podcast, he highlighted the reliability of enterprise software, contrasting it with the less dependable AI chatbots.
On the hardware front, Nvidia reported a 75% increase in data center revenue, reaching $62.3 billion for its fourth fiscal quarter in 2026, alongside an 82% rise in adjusted earnings per share to $1.62. The company anticipates a total revenue of $78 billion for the first quarter, reflecting a 77% gain. Additionally, Advanced Micro Devices secured over $100 billion in a deal with Meta Platforms, showcasing continued growth in the AI hardware segment.
Overall, both AI software and hardware sectors seem primed for further investment, with global data center spending projected to hit between $3 trillion and $4 trillion annually by 2030.
