May 28, 2025

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NICE, Microsoft, Salesforce, AI, Cloud Computing, Generative AI

The technology sector is experiencing significant growth and transformation driven by artificial intelligence (AI) and cloud computing. Companies like NICE Ltd., Microsoft, and Salesforce are at the forefront of this shift, with mixed results and challenges in their respective markets. NICE faces growth challenges due to slowing cloud revenue growth, while Microsoft has solidified its position as a leader in the technology sector with a strong focus on AI and cloud computing. Salesforce has acquired Informatica, a data-management software firm, to enhance its data foundation and deploy powerful and responsible agentic AI. The AI market is expected to grow at a compound annual growth rate of over 18%, with generative AI services growing as high as 75% CAGR over the coming five years. Public cloud vendors such as Amazon, Microsoft, and Alphabet are driving investment in generative AI infrastructure, with plans to allocate over $250 billion in 2025. Other companies like SoundHound AI, Marvell Technology Group Ltd., and Veeva Systems are also expected to benefit from the growing demand for AI and cloud computing. Chinese tech titans Baidu and Alibaba have increasingly pivoted toward artificial intelligence, with strong growth prospects in the Chinese market. The adoption of generative AI is moving beyond early experiments, with businesses building more sophisticated applications and wealth management firms investing significant resources into the technology.

Key Takeaways

  • NICE Ltd. faces growth challenges due to slowing cloud revenue growth and implementation delays.
  • Microsoft has solidified its position as a leader in the technology sector with a strong focus on AI and cloud computing.
  • Salesforce has acquired Informatica to enhance its data foundation and deploy powerful and responsible agentic AI.
  • The AI market is expected to grow at a compound annual growth rate of over 18%.
  • Generative AI services are expected to grow as high as 75% CAGR over the coming five years.
  • Public cloud vendors plan to allocate over $250 billion in 2025 for generative AI infrastructure.
  • SoundHound AI, Marvell Technology Group Ltd., and Veeva Systems are expected to benefit from the growing demand for AI and cloud computing.
  • Baidu and Alibaba have strong growth prospects in the Chinese market due to their increasing focus on artificial intelligence.
  • The adoption of generative AI is moving beyond early experiments, with businesses building more sophisticated applications.
  • Wealth management firms are investing significant resources into generative artificial intelligence, with 72% of firms indicating moderate to large investments in 2025.

NICE Faces Growth Challenges

NICE Ltd., a leading provider of AI-driven customer experience solutions, is at a critical juncture due to a rapidly evolving market landscape. The company has a strong position in AI-enabled cloud platforms, but faces challenges such as slowing cloud revenue growth and implementation delays. NICE reported mixed results for the first quarter of 2025, with revenues slightly exceeding analyst expectations. The company's non-GAAP EPS was in line with guidance, and its non-GAAP operating margin stood at 30.5%. NICE's cloud revenue grew by 12% year-over-year, but this growth rate marks a deceleration from the previous quarter's 24% increase.

AI Investment to Grow

The focus on artificial-intelligence-driven technologies has shifted from curiosity to the forefront of enterprise strategies. Generative AI may represent a long-term opportunity grounded in robust economic potential. Public cloud vendors such as Amazon, Microsoft, and Alphabet are driving investment in generative AI infrastructure, with plans to allocate over $250 billion in 2025. The AI market is expected to grow at a compound annual growth rate of over 18%, with generative AI services growing as high as 75% CAGR over the coming five years. Enterprise adoption of generative AI is moving beyond early experiments, with businesses building more sophisticated applications.

Microsoft's AI Growth

Microsoft Corporation has solidified its position as a leader in the technology sector, with a strong focus on artificial intelligence and cloud computing. The company has demonstrated robust financial performance, with revenue growing at 14.13% year-over-year. Microsoft's AI revenue has reached an annual run rate of $13 billion, with analysts projecting potential growth to exceed $50 billion by fiscal year 2027. The company's cloud computing platform Azure has been a standout performer, with a 35% year-over-year increase in revenue. Microsoft's commitment to AI is evident across its product portfolio, including the introduction of Copilot, an AI-powered assistant.

Salesforce Acquires Informatica

Salesforce announced that it is buying data-management software firm Informatica in a deal valued at $8 billion. The transaction will give Salesforce access to Informatica's data management capabilities, enhancing its data foundation and deploying powerful and responsible agentic AI. Informatica's shareholders will receive $25 in cash per share, a premium of about 11% from Friday's closing price. The acquisition is expected to close in fiscal year 2027 and will establish a unified architecture for agentic AI, enabling AI agents to operate safely and responsibly across the modern enterprise.

Salesforce Buys Informatica

Salesforce is buying AI-powered cloud data management company Informatica in an approximately $8 billion deal. Informatica's shareholders will receive $25 per share, a premium of about 11% from Friday's closing price. The transaction will give Salesforce access to Informatica's data management capabilities, enhancing its data foundation and deploying powerful and responsible agentic AI. The acquisition is expected to close in fiscal year 2027 and will establish a unified architecture for agentic AI, enabling AI agents to operate safely and responsibly across the modern enterprise.

Nvidia Q1 Earnings Preview

Nvidia reports Q1 2026 earnings on May 28th, with key metrics and analysis to watch for the AI chip leader. The company's growth drivers, risks, and technical levels will be closely monitored. Nvidia's earnings preview is expected to provide insight into the company's performance and future prospects in the AI and cloud computing markets.

Buy SoundHound AI Stock

SoundHound AI is a pure play in the rise of artificial intelligence, with a voice-AI platform that is a direct play on the AI revolution. The company has a multitude of segments to expand its growth runway, including further integrating its conversational AI technology into auto. SoundHound AI stock has taken a beating this year, losing more than half of its value, but Piper Sandler has initiated coverage with an overweight rating and a $12 per share price target, implying more than 25% upside.

BingX Launches BingAI

BingX, a leading cryptocurrency exchange and Web3 AI company, has launched BingAI, an AI-powered crypto trading assistant. BingAI is designed to empower crypto traders of all levels with real-time market insights, strategic recommendations, and personalized guidance. The launch of BingAI represents a major leap toward making AI a trusted and side-by-side companion throughout every user's trading journey.

AI-Driven Tech Stocks to Buy

Marvell Technology Group Ltd. and Veeva Systems are two AI-driven tech stocks to buy before they surge in June. Marvell Technology has tanked 50% from its January peaks, but its selloff was due and its valuation levels desperately needed a reset. Veeva Systems has averaged roughly 25% revenue growth over the last decade, and its stock has surged 760% to more than double the Tech sector. Both companies have strong growth prospects and are expected to benefit from the growing demand for AI and cloud computing.

Baidu vs Alibaba

Baidu and Alibaba are two Chinese tech titans that have increasingly pivoted toward artificial intelligence. Baidu has successfully repositioned itself as an AI-first company, with its AI Cloud business surging 42% year over year. Alibaba has staged a notable comeback in the past year, with its Cloud and AI segments driving strong momentum. Both companies have strong growth prospects and are expected to benefit from the growing demand for AI and cloud computing in China.

Gen AI Gathers Momentum

A rising share of wealth management firms are putting significant resources into generative artificial intelligence, according to a new global survey of financial services executives. Nearly half of the respondents were based in North America, with the remainder divided between Europe and Asia-Pacific. The average respondent firm reported $83 billion in assets under management. The survey found that 72% of firms indicated they were making moderate to large investments in generative AI in 2025, up from 40% the previous year.

Sources

AI Artificial Intelligence Cloud Computing Generative AI Machine Learning NICE Ltd.