Core Insights
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Cathie Wood believes that various stocks might benefit massively if the AI software market flourishes.
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However, one stock shines brightly as a key player in this realm.
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Even if the market doesn’t achieve $13 trillion, this pick is still expected to do incredibly well.
- Discover 10 stocks we favor over Nvidia »
Artificial Intelligence (AI) is undeniably changing the game for numerous sectors, with software development being chief among them. Sundar Pichai, the head honcho at Google and its umbrella company, Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL), recently revealed that AI has helped generate more than 30% of Google’s code.
Cathie Wood, along with her team at Ark Invest, argues we are just scratching the surface of what’s possible with AI in software. She’s anticipating that the AI software market could skyrocket to a jaw-dropping $13 trillion by 2030. Personally, I believe there’s a particular stock here that’s bound to excel if her predictions hold water.
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One Standout Stock
I genuinely believe numerous stocks are set to soar if AI in software hits a $13 trillion milestone over the next five years. Alphabet is a key player I’ll talk about first.
The tech titan’s Google Gemini Code Assist is a game-changer for software coding, offering help with both coding and debugging across various languages. Interestingly, Google DeepThink could have snagged second place in the 2025 International Collegiate Programming Competition if large language models (LLMs) had been eligible to compete—OpenAI’s GPT-5 would have taken the top spot.
Datadog(NASDAQ: DDOG) is another major contender and is likely to thrive if the AI software sector takes off. Their tech enables customers to keep a close eye on their cloud apps and infrastructure, and considering most AI software operates in the cloud, Datadog is positioned to benefit immensely if Wood’s predictions turn into reality.
But honestly, I feel one stock truly shines among the others when it comes to capitalizing on a booming AI software market: Nvidia(NASDAQ: NVDA). Yes, Nvidia already ranks as the largest firm by market cap, but if Wood is accurate, it’s on the brink of even more significant growth in the years to come.
The Hub of the AI Landscape
It’s safe to say that Nvidia sits at the heart of the AI industry. Their GPUs are, and continue to be, essential for driving AI models.
I really don’t think Nvidia will lose its position anytime soon. Sure, others have unveiled chips that can be utilized for AI training and inference, but none have matched Nvidia’s consistency and performance. It’s not a surprise that their latest Blackwell GPUs are virtually flying off retail shelves.
What matters even more is that Nvidia isn’t about to hit the brakes on innovation. They’ve recently rolled out their new Rubin CPX GPU that supports enormous-context inference, allowing AI models to sip through millions of tokens.
This chip could well be a landmark advancement for video production grounded in generative AI. I suspect Nvidia’s new GPU could also transform AI software development tremendously. Why’s that? For effective full-blown software development, AI models need to grasp and process entire coding frameworks. Current technology struggles with this volume, but Rubin CPX should open the door for AI to evolve from merely coding assistance to sophisticated utilities that can handle vast software projects.
While the Rubin CPX won’t be hitting the market until late next year, I am confident that Nvidia isn’t just central to the AI spectrum; it’s destined to be pivotal in the AI software universe as well.
Can the AI Software Market Really Reach $13 Trillion?
Cathie Wood and her crew at Ark Invest are significantly more optimistic about the expansion of the AI software market over the next five years compared to many analysts. For context, ABI Research estimates the market could land at $467 billion by 2030, which, while impressive (reflecting a 25% annual growth rate), just doesn’t match the $13 trillion prediction.
Ark Invest’s outlook hinges on the idea of “rapid mass adoption” of AI in software creation—suggesting that as much as “81% of current work hours will be automated by 2030.” That might be a tad too optimistic, but it’s not completely out of reach.
Nonetheless, there’s a grain of doubt in whether the AI software market can really touch $13 trillion within just five years. Even if it falls short, I firmly believe that AI will have a far greater role in software development by that timeframe than it does currently. I’m also convinced Nvidia will be a frontrunner no matter the size of the AI software market by the decade’s end.
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Keith Speights owns shares in Alphabet, Amazon, and Microsoft. The Motley Fool has allegiance to and recommends companies like Alphabet, Amazon, Datadog, Microsoft, and Nvidia. Furthermore, they endorse Confluent and have made the following options: long calls on Microsoft expiring January 2026 at a strike price of $395 and short calls on Microsoft expiring January 2026 at a strike price of $405. A detailed breakdown of the Motley Fool’s disclosure policy can be found here.
