Three software stocks tied to AI and data growth
Three software stocks tied to AI and data growth
Publish Date: 2026-06-15 14:17:00
Source Domain: www.bnnbloomberg.ca
Using an unordered list, summarize the following article with between 4 and 8 key points. Thomas Martin, senior portfolio manager at GLOBALT Investments, joins BNN Bloomberg to share his Hot Picks in software. Artificial intelligence is reshaping the software sector, creating both risks and opportunities as investors sort through which companies can adapt and grow in an evolving technology landscape.BNN Bloomberg spoke with Thomas Martin, senior portfolio manager at GLOBALT Investments, about software-sector trends and why he sees Palo Alto Networks, Palantir and MongoDB as well positioned to benefit from long-term demand for cybersecurity, data management and AI-enabled solutions.Key TakeawaysSoftware valuations have been pressured by uncertainty over how AI will affect traditional software providers and business models. Cybersecurity spending remains a priority for organizations as AI tools create new security risks and vulnerabilities. Companies building AI-enabled platforms and enterprise software solutions may be better positioned to capture long-term growth. Demand for data infrastructure and database technologies is expected to increase as AI applications become more widely adopted. Investors are increasingly distinguishing between software companies that can leverage AI and those whose competitive positions remain uncertain.Thomas Martin, senior portfolio manager at GLOBALT Investments Thomas Martin, senior portfolio manager at GLOBALT Investments Read the full transcript below:LINDSAY: Welcome back. It’s time now for Hot Picks, and today we are zeroing in on the software sector. Let’s welcome Thomas Martin, senior portfolio manager at GLOBALT Investments. Good morning. Thanks for joining us.THOMAS: Good morning, and thanks for having me on your program.LINDSAY: Of course. Before we get into your Hot Picks, let’s take a step back. Tell me what the current state of the software sector looks like right now, because obviously it was hard times for the software sector at the beginning of 2026. Is it doing a little better now?THOMAS: Yeah, well, it’s been a minefield, and I think a lot of that has to do with perceptions of what AI is and isn’t going to do to various vendors. At one point, you weren’t going to need dedicated software anymore because everybody was going to make their own. Software stocks all got hit, and then we had to start differentiating among who was going to use AI and be an AI winner, who was simply going to be able to survive in that environment, and those where it’s still an open question. That’s why it’s been so difficult.LINDSAY: So I’m assuming your Hot Picks are probably the ones you think are going to survive through it. We’ll get to the first one. That’s Palo Alto Networks. Tell us why you like this company and the opportunity you see here.THOMAS: Sure. These are each names that we own, and we’ve owned them for a while. With Palo Alto, I think the thing is to step back and recognize that they wanted to become a platform company a couple of years ago, and they changed their strategy. Their stock got hit on that, and it’s obviously recovered since then, but it’s a long strategy to execute on. They’ve done that both internally and through acquisitions.Two of their notable acquisitions are Chronosphere and CyberArk. In the most recent earnings report, both of those were ahead of schedule in their integration and were accounting for a significant amount of the incremental growth for the company, so that’s a good thing.They’ve been doing an accelerated number of platformization deals, so that is starting to really come together. In addition to that, cybersecurity is a big issue anyway, and with the advent of LLMs being able to find flaws and exploit them, the urgency of having a good cybersecurity firm has become more important. I think that’s what’s really started to goose the stock lately.LINDSAY: What are the biggest headwinds for a company like this? I’m assuming it’s AI.THOMAS: Well, we’re hoping AI is not going to be a headwind for them. We think it’s going to be something they can take advantage of. But there’s still a lot that’s unknown in that regard, and how nimble companies are, and even the providers themselves. Every day is a new day, so there’s still plenty of risk out there as things are moving so fast.LINDSAY: Okay, next up is Palantir. This is your next Hot Pick. Tell us why you like it.THOMAS: Palantir is interesting today, I think, in light of the SpaceX offer that came. Palantir is known for one thing in particular, which is being highly overvalued, or a very expensive stock, even given its high growth rate and all of the great things it can do.It fits into the category of a few stocks that are like that, but lately the stock is off 38 per cent from its high. You’re getting a chance here to pick it up at a less lofty valuation. Some of that has to do, again, with fears surrounding the LLMs.Palantir is differentiated from what the LLMs can do. They make custom solutions that have to be robust in difficult environments. The defence and battlefield area is one example, but also hospital settings, financial settings and others. You’ve got to be right, and they’re doing that.The growth rate in their most recent quarter is still very high. Commercial revenue grew 133 per cent and government revenue was still up 84 per cent. The company is well positioned, and you’re getting a chance to buy it at a cheaper price.LINDSAY: Last up is MongoDB. Do you own this one, and why do you like it?THOMAS: Yeah, we own this one too. This is a company in the database area. They’ve been focused on enterprise customers and then moving into the cloud, and that part of the business has been growing very quickly.Their product, called Atlas, grew 29 per cent in the most recent quarter. They are not touting themselves as an AI company, but they do want to be a company that is used by AI. They’re not going to be put out of business by AI, but they don’t have the sizzle of being an AI company.The most recent quarter was a beat and a raise, but their guidance was conservative. I think that as they get their model together and start integrating how they’re useful to AI and those types of things, there’s room for some upward surprises in their numbers.LINDSAY: Okay, we will leave it there. Thomas Martin, senior portfolio manager at GLOBALT Investments. Really appreciate your time. Thanks so much.THOMAS: Great. Thanks for having me on.LINDSAY: Thank you.DISCLOSUREPERSONALFAMILYPORTFOLIO/FUNDPANW NASDAQNNYPLTR NASDAQNNYMDB NASDAQNNY—This BNN Bloomberg summary and transcript of the June 15, 2026 interview with Thomas Martin are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
