This article first appeared on GuruFocus.
Artificial intelligence is turning whole industries upside down, but talk of a bubble may be jumping the gun. That’s the view from Macquarie, which says the frenzy around names like Nvidia (NASDAQ:NVDA), Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) shouldn’t distract from the bigger picture.
In a new report, the firm highlighted 58 AI-native companies it tracks, together worth about $741 billion. That sounds big, but it’s only a sliver of the $9.2 trillion public software market. OpenAI alone makes up 41% of the private total, mirroring Microsoft’s dominance on the public side. The list also features Databricks, Anthropic, xAI, Perplexity, Scale AI and Cohere all firms carving out niches in the fast-moving space.
Macquarie thinks the next real battleground is agentic AI, systems that act with more autonomy. But it warns the rollout will be slower than some expect, as businesses still wrestle with trust, security and the basics of getting their data ready.AI disruption is real, but the market is still just getting started.