Dan Ives says software stocks have earned their clearest buy signal in months. Oracle’s latest earnings marked a turning point for a sector many investors had shunned.
Ives, a partner and senior managing director at Yorkville Ives, made the comments on CNBC’s Fast Money. He said institutional investors have to rotate back into software, pointing to Oracle, Adobe, Palantir and Snowflake.
Investors “Caught Offsides” as Sentiment Shifts
Ives argued Wall Street had underpriced Oracle’s backlog. He said the street assumed a 50% to 60% chance the backlog never converts to revenue. That conversion depends on Oracle building out enough data center capacity to meet demand from its cloud and AI customers.
“This is a penalty box stock.”
Dan Ives, CNBC
He added that one strong quarter will not be enough. Oracle needs to show follow-through before the market fully re-rates the stock. Investors will not give the company credit for one earnings beat after months of skepticism.
Software Has Similarities to Semicinductors
Ives drew a contrast with semiconductors, where he remains more confident. He pointed to a 13-to-1 demand-to-supply ratio in Asian chip markets.
He said that leaves Nvidia the safer bet over AMD or Intel as they try to close the gap. That caution echoes a broader debate around chipmaker earnings reactions, where sentiment has swung sharply on any sign of slowing demand.
Software’s rebound follows a rough stretch. The sector had lagged for months on AI-driven fears before a string of software earnings turnarounds changed the narrative.
Ives said the shift is now visible across the software trade, not just at a single company.
Ives stopped short of declaring an outright buy signal, though.
“It’s like a lime green actually.”
Dan Ives, CNBC
The distinction matters. Ives is describing a sector still proving itself, not one investors should chase blindly. Whether that lime green deepens may hinge on Oracle’s follow-through in coming quarters.
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