Corporate AI spending is proving remarkably resilient, even as broader enterprise tech budgets wobble under tariff pressure, according to a new memo from Wedbush Securities released Thursday.
The firm said AI now accounts for roughly 15% of enterprise IT budgets and is “strategically coveted” by CIOs — a priority area they’re defending, even as lower-tier projects get pushed or paused.
“The good news is that we are still seeing very firm Cap-Ex intentions for 2025 as this AI Revolution is upon us and the use case enterprise phase is accelerating in many large scale AI strategic deployments,” the analysts wrote.
In recent weeks, Wedbush spoke with dozens of CIOs, product leads, and enterprise decision-makers, many of whom described cloud and AI projects as too strategically significant to delay. “The amount of planning, budget dollars, [and] strategic focus has already left the station,” the memo said. “Companies… are moving full steam.”
That’s a shift from just weeks ago, when Wedbush had flagged concerns that uncertainty around tariffs and IT spending could hit “hyperscalers” like Microsoft (MSFT). This latest round of field checks now suggests that AI and cloud budgets are, for the moment, a “safety blanket in this storm.”
However, the pipeline remains shaky. About 25% of big-ticket deals are being delayed, and closure rates have become unpredictable.
“Predicting the next few quarters is essentially playing darts blindfolded,” the memo added, warning that upcoming earnings from Microsoft, Google (GOOGL), and Amazon (AMZN) may be packed with caveats and cautious guidance.
Investors may need to treat this quarter as a “mulligan” for the sector — but Wedbush still sees upside. In addition to Microsoft, Google, and Amazon, the firm also highlighted Palantir (PLTR), Pegasystems (PEGA), and IBM (IBM) as names likely to benefit from persistent enterprise AI demand.
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