2025 Global Technology Conference: What did we learn?
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Investing.com -- The 2025 BofA Global Tech conference offered a cautiously optimistic view of the technology sector, with AI again at the center of attention. Demand trends appeared resilient across semiconductors, software and cybersecurity, though the outlook remained uneven in some areas.
AI and autos underpin semiconductor sentiment
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AI and optical component suppliers were among the most upbeat.
Nvidia’s rackscale systems are now in full production, and demand for inference computing, estimated to require 20 times more resources than training continues to rise. Government-led AI initiatives are also contributing to broader momentum.
Bank of America analysts cited growing confidence in a second-half rebound for diversified chipmakers. ON Semiconductor (NASDAQ:ON) said the downturn in automotive markets likely bottomed in the June quarter and projected stronger growth tied to industrial and EV-related demand through the rest of the year.
Texas Instruments (NASDAQ:TXN) and Microchip (NASDAQ:MCHP) offered a more cautious tone, describing the recovery as in its early stages but one that could yield better operating leverage as volumes improve.
Chip design firm Synopsys (NASDAQ:SNPS) is still evaluating the impact of new U.S. export restrictions. Equipment suppliers remained positive on prospects for leading-edge wafer fabrication investments.
Software spending steady, AI pilots expand
Software firms reported stable enterprise spending despite macroeconomic uncertainty.
Salesforce (NYSE:CRM) cited continued weakness in manufacturing and retail, partly due to tariffs, but saw strength elsewhere.
ServiceNow (NYSE:NOW) and Salesforce reported active pilot programs for AI-driven tools, though these efforts have yet to produce significant revenue.
Microsoft (NASDAQ:MSFT) said adoption of its 365 Copilot product is growing, with usage now reaching "hundreds of thousands" of customers.
Cybersecurity firms highlight stable demand, AI integration
Cybersecurity spending remained steady despite broader volatility, BofA analysts said.
Companies pointed to growing use of platform models and AI tools, both to improve threat detection and protect AI applications.
Zscaler (NASDAQ:ZS) saw gains in data protection and security operations. Palo Alto Networks (NASDAQ:PANW) emphasized its Prisma AI security offering and Cortex Cloud suite, while Fortinet (NASDAQ:FTNT) cited demand in next-generation firewalls, secure access, operational technology, and embedded AI capabilities.
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