Software companies viewed as artificial intelligence plays such as Palantir Technologies turned in mixed results on the first day of trading in 2025. While Palantir stock dipped along with Salesforce, shares in Snowflake rose on Thursday.
Heading into the new year, Wall Street expectations were rising for software companies integrating AI into products.
"The time has come for the broader software space to get in on the AI Party as we believe the use cases are exploding and the enterprise consumption phase is ahead of us beginning in 2025," said Wedbush analyst Daniel Ives in a report. "The true adoption of generative AI will be a major catalyst for the software sector."
On the stock market today, Palantir stock dipped 0.6% to close at 75.19. Salesforce stock fell 1.1% to 330.66. Snowflake stock rose 2% to 157.51. Shares in C3.ai, also one of the high-volume trading AI plays, rose 0.7% to 34.67.
SoundHound Stock Wavers
Further, SoundHoundAI has been one of the software AI stocks followed by day traders. SoundHound stock climbed 1.6% to 20.16. SoundHound makes AI voice software.
Among other software AI stocks, ServiceNow dipped 0.5% to 1,054 while cybersecurity firm CrowdStrike rose 1.5% to 347.34.
Having struggled to generate new revenue from conversational "copilots," software companies are now turning to autonomous, goal-driven AI "agents" that complete tasks on their own.
Palantir Stock Soared In 2024
Meanwhile, Palantir stock popped about 340% in 2024 while small-cap SoundHound stock soared over 850%. Snowflake stock fell 16% in 2024. Salesforce stock advanced 30%.
Further, Palantir is among AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
