By Moz Farooque ACCA
Publication Date: 2025-12-23 17:46:00
This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM) are heading into 2026 with strong backing from Evercore, which says investors are not ready to walk away from big, infrastructure-led software names just yet.
In a note to clients, Evercore said the software rally should broaden next year, but the core AI infrastructure trade is still very much alive. Microsoft, Snowflake (NYSE:SNOW), and Oracle (NYSE:ORCL) remain top picks, supported by steady AI spending from hyperscalers. Oracle, in particular, has faced questions around debt and its ties to OpenAI, but Evercore said demand for enterprise AI continues to outweigh those worries.
Salesforce also stood out as a comeback story. Analysts said it checks many boxes of a washed-out software name, with improving momentum tied to its AI push and the potential for revenue growth to re-accelerate. Its relatively low free cash flow multiple was seen as making the risk-reward more…
