AI Software Stocks Set to Surge in Next Market Phase

The artificial intelligence revolution is no longer confined to chipmakers, hyperscalers, or data infrastructure giants. While companies like Nvidia and Microsoft have dominated headlines and investor portfolios over the past two years, a quieter yet potentially more lucrative shift is underway. The next phase of AI growth is unfolding not at the infrastructure layer—but within the software applications businesses use every day.

This transition is reshaping how investors evaluate opportunity across the technology sector. Instead of focusing solely on who powers AI, attention is increasingly turning to who profits from it at scale. Enterprise AI software stocks that embed intelligence directly into workflows—sales, marketing, product design, and customer engagement—are emerging as the next frontier of monetization.

Among this new wave of contenders, three companies stand out for their positioning, growth potential, and increasing integration of artificial intelligence into their platforms: ZoomInfo, HubSpot, and Figma. These firms are not necessarily the most talked‑about names in AI, but they may offer some of the most compelling upside as adoption accelerates across industries.

What sets them apart is not just their use of AI, but how deeply it is embedded into the core of their business models—transforming productivity, automating decision‑making, and unlocking new revenue streams. As the AI application layer matures, investors who look beyond mega‑cap infrastructure plays may find differentiated opportunities in these emerging software leaders.

From AI Infrastructure to the Application Layer

For much of the recent AI boom, the narrative has centered on infrastructure. Semiconductor companies, cloud providers, and large‑scale compute platforms have led the charge, benefiting from surging demand for processing power and data storage.

However, infrastructure alone does not generate long‑term enterprise value unless it translates into real‑world business outcomes. Companies are now moving beyond experimentation and into implementation—seeking measurable returns from AI investments. This is where the AI application layer stocks become critical, because they sit closest to the activities that drive revenue and productivity inside organizations.

Rather than building models or supplying hardware, application‑layer companies integrate AI into tools that organizations already rely on. These include:

• Customer relationship management systems

• Sales intelligence platforms

• Marketing automation tools

• Product design and collaboration software

• Workflow optimization and automation systems

By being the interface between AI capabilities and daily operations, these platforms offer a more direct path to monetization. Instead of selling access to compute power, they deliver tangible productivity gains, cost savings, and revenue growth for their clients.

In this environment, AI software companies that successfully integrate intelligence into their ecosystems are positioned to capture recurring revenue streams while increasing customer retention and platform stickiness.

Why Enterprise Workflows Are the Real AI Opportunity

The true value of AI lies not in its novelty, but in its ability to improve everyday business operations. Enterprises are increasingly focused on practical use cases such as:

• Automating lead generation and sales outreach

• Enhancing customer engagement through personalization

• Streamlining marketing campaigns with predictive analytics

• Accelerating product development through AI‑assisted design

• Improving decision‑making with real‑time insights

These applications represent massive addressable markets, as nearly every company relies on some combination of these functions.

Unlike consumer-facing AI tools, enterprise AI software stocks benefit from:

• Higher switching costs

• Subscription‑based revenue models

• Deep integration into business processes

• Long‑term customer relationships

This creates a powerful combination: scalable AI‑driven innovation paired with predictable, recurring revenue. As a result, software companies operating at this layer are increasingly seen as the primary beneficiaries of widespread AI adoption, not just the infrastructure giants that enable the compute behind the scenes.

Three AI Software Stocks JPMorgan Sees as Big Winners

As investor focus shifts from infrastructure to applications, a handful of software names have emerged as high‑conviction ideas for the next phase of the AI cycle. JPMorgan has highlighted three in particular as standout opportunities at the application layer: ZoomInfo, HubSpot, and Figma. These companies operate in very different parts of the enterprise stack—sales intelligence, CRM and marketing, and product design—but they share a common thread: each is embedding AI deeply into workflows that businesses already run every day.

What makes this trio especially interesting is the combination of depressed sentiment, under‑appreciated AI leverage, and sizable upside baked into JPMorgan’s targets. The bank’s analysts see more than 214% potential upside for ZoomInfo, nearly 115% for HubSpot, and over 91% for Figma from recent trading levels. For investors looking beyond the crowded mega‑cap AI trade, these three AI software stocks offer differentiated exposure to the monetization layer of generative AI.

ZoomInfo: AI Supercharging Sales Intelligence

ZoomInfo (NASDAQ:GTM), sits at the intersection of data, automation, and go‑to‑market execution. The company started as a sales intelligence platform, providing structured data on companies and decision‑makers to help sales teams find and connect with the right prospects. Over time, it has evolved into a broader go‑to‑market operating system that supports sales, marketing, and revenue operations.

What is changing now is how deeply AI is being woven into that platform. ZoomInfo has been leaning into AI‑driven customer targeting, automated prospecting, and end‑to‑end sales workflow tools that aim to replace much of the manual effort once required to build and manage pipelines. Instead of reps spending hours combing through static lists, AI models can surface high‑intent accounts, prioritize outreach based on buying signals, and trigger campaigns tailored to where prospects sit in the funnel.

From a stock‑specific standpoint, ZoomInfo is also notable because it has moved from market darling to significant laggard. Shares recently traded in the low‑single‑digit range, around 3 to 4 dollars, after a sharp derating tied to macro headwinds, slower growth, and concerns about competition. Against that backdrop, JPMorgan’s $11 price target represents a contrarian call: the firm sees more than 214% upside from recent levels and maintains an overweight stance despite broader skepticism.

The bullish thesis rests on several pillars:

• AI as a force multiplier for sales productivity: If enterprises can generate more revenue per rep by automating low‑value tasks and improving conversion rates, ZoomInfo’s value proposition strengthens.

• Structural role in go‑to‑market tech stacks: ZoomInfo is integrated into CRMs, engagement platforms, and marketing systems, increasing stickiness as AI features become central to workflows.

• Optionality in new products: Beyond core data, AI‑enhanced offerings like automated outbound campaigns and predictive scoring can open incremental revenue streams.

Risks are real: the company faces competitive pressure from both legacy data providers and newer AI‑native tools, while customers are scrutinizing software spend more carefully. But if ZoomInfo can demonstrate that its AI‑driven suite directly translates into higher win rates and lower customer acquisition costs, the current valuation could prove overly pessimistic.

In that sense, ZoomInfo has become a high‑beta way to express a view on AI’s impact on B2B sales. If the go‑to‑market stack is re‑architected around intelligent automation, its data, models, and integrations position it to capture meaningful upside from that transition.

HubSpot: CRM, AI Copilots, and Full‑Funnel Automation

While ZoomInfo attacks the top of the funnel, HubSpot (NYSE:HUBS), has built its franchise around managing the entire customer lifecycle for small and mid‑market businesses. The company’s platform spans marketing automation, CRM, sales enablement, and customer service, giving it a broad surface area to apply AI.

Over the past 18–24 months, HubSpot has shifted aggressively into AI copilots and workflow intelligence. Its AI features aim to help users draft content, personalize outreach, score leads, suggest optimal next steps, and automate repetitive tasks across marketing and sales. In effect, HubSpot is trying to turn its CRM into an active participant in revenue generation rather than a passive system of record.

This strategy aligns squarely with what enterprises say they want from AI: tools that can improve productivity and conversion without requiring heavy technical lift or wholesale system replacement. HubSpot targets organizations that may not have in‑house data science teams but still want to leverage AI in everyday operations. By embedding copilots directly into existing interfaces, HubSpot reduces adoption friction and increases the likelihood that customers will actually use AI capabilities in a sustained way.

From a market perspective, HubSpot is no longer a hidden gem—it has become a well‑known growth name—but JPMorgan still sees substantial runway. The bank has assigned a $425 price target, implying nearly 115% upside from roughly $198 per share in its note. That level of potential appreciation for a large‑cap SaaS name underscores how central AI is becoming to the HubSpot story.

Key elements of the bullish case include:

• Full‑stack positioning: HubSpot sits at the center of the customer journey, giving it multiple vectors to deploy AI, from acquisition through retention.

• AI copilots as upgrade catalyst: As AI capabilities deepen, HubSpot has opportunities to drive seat expansion, tier upgrades, and attach rates for new modules tied to intelligent automation.

• Strong ecosystem and integrations: HubSpot’s marketplace and partner network make it easier to slot AI‑driven workflows into broader tech stacks, amplifying its value.

Risks mirror those of the broader SaaS landscape: intensifying competition from established CRM vendors and AI‑native startups, macro pressure on software budgets, and the need to keep innovating at a rapid clip. Yet HubSpot’s combination of brand, product depth, and AI roadmap has convinced JPMorgan that the stock can re‑rate meaningfully higher as customers increasingly prioritize platforms that can orchestrate full‑funnel automation.

For investors, HubSpot represents a more diversified, somewhat lower‑risk way to play AI adoption in go‑to‑market teams. Instead of betting on a single use case, you gain exposure to a platform where AI threads through marketing, sales, and service in a unified fashion.

Figma: AI‑Assisted Design and Collaborative Creation

The third name in JPMorgan’s trio, Figma (NYSE:FIG), is arguably the purest “design layer” play in the group. The company built its reputation on a browser‑native, collaborative design platform used by product teams to create interfaces, prototypes, and digital experiences. What is changing now is how that collaboration layer is being augmented by AI.

Figma has become closely linked to the rise of AI‑assisted product creation and software design workflows. AI can help generate layout options, suggest design tweaks, automate routine tasks like asset resizing, and even bridge the gap between design and code. In a world where teams are under pressure to ship faster while maintaining high quality, this blend of collaboration and intelligence is increasingly attractive.

JPMorgan has highlighted Figma as a key application‑layer beneficiary of generative AI, assigning a $42 price target that implies more than 91% upside from recent levels near the low‑20‑dollar range. That view comes even as other firms have trimmed their price targets in response to concerns about competitive intensity and the broader software tape.

The constructive stance on Figma rests on several factors:

• Deep embed in product workflows: Figma sits at the heart of how product, design, and engineering teams collaborate, which makes it a natural host for AI‑driven enhancements.

• Convergence of design and development: As AI makes it easier to go from mockup to functional interface, platforms like Figma can capture value at multiple points in the build process.

• High‑margin, scalable model: With robust software‑like margins and a usage‑based, seat‑driven business, incremental AI features can drive attractive unit economics.

The risks are non‑trivial. Figma operates in a crowded arena that includes large incumbents and emerging AI‑native competitors, and its stock has already experienced sharp volatility, trading well below prior highs. Additionally, if AI commoditizes certain aspects of design, the company must ensure it captures value by becoming the orchestration layer rather than just one of many tools.

Even so, JPMorgan’s view is that Figma is positioned to become a foundational platform in the generative AI era—particularly for organizations that see design as a strategic differentiator. If AI‑assisted creation becomes the norm, Figma stands to benefit from both higher usage intensity and greater willingness among enterprises to standardize on a single collaborative environment.

For investors, Figma offers exposure to the creative side of AI: how ideas are turned into interfaces, products, and experiences. While more volatile than some peers, it also exemplifies the potential for AI to reshape not just back‑office workflows, but the very process of building digital products.

How These AI Software Stocks Compare

To frame these three opportunities side by side, here is a quick view of their roles in the AI application layer based on JPMorgan’s commentary and recent pricing.

These three names cover distinct parts of the enterprise stack—sales, customer lifecycle, and product creation—giving investors diversified exposure to the AI software theme rather than a single narrow use case.

The Competitive Advantage of Embedded AI

One of the defining characteristics of successful AI application layer stocks is the depth of integration. Superficial AI features are unlikely to deliver lasting value or competitive differentiation.

Instead, the most promising companies are those that:

• Embed AI into core workflows rather than offering it as an add‑on

• Continuously learn from user data to improve performance

• Provide seamless user experiences without requiring technical expertise

• Deliver measurable outcomes such as increased revenue or reduced costs

This level of integration creates strong competitive advantages:

• Higher customer retention due to reliance on AI‑driven features

• Increased switching costs as workflows become deeply embedded

• Enhanced data ecosystems that improve over time

• Opportunities for upselling and cross‑selling additional features

As a result, AI software stocks that successfully implement embedded intelligence are likely to outperform peers that treat AI as a secondary capability.

Market Dynamics Favoring Smaller Software Players

While large technology companies dominate headlines, smaller and mid‑cap AI software stocks may offer greater upside potential.

Several factors contribute to this dynamic:

• Lower starting valuations compared to mega‑cap peers

• Greater flexibility to innovate and adapt quickly

• Niche market focus with specialized solutions

• Potential for rapid revenue growth as adoption accelerates

Additionally, these companies often operate under the radar, meaning their growth potential may not be fully priced into the market. As investor focus shifts from infrastructure to applications, these firms are likely to receive increased attention and capital allocation.

Risks and Considerations for AI Software Stocks

Despite the promising outlook, investing in AI software stocks is not without risks. Key considerations include:

• Execution risk: Successfully integrating AI into products requires significant technical expertise and resources.

• Competition: Larger players may enter the market or expand their offerings, compressing margins and limiting differentiation.

• Adoption rates: Enterprise adoption may take longer than expected due to cost, complexity, or regulatory concerns.

• Data privacy and security: Increased reliance on data‑driven systems raises potential compliance challenges.

Investors should evaluate companies based on their ability to navigate these challenges while maintaining strong growth trajectories and clear paths to monetizing AI features.

The Future of AI‑Driven Software

Looking ahead, the role of AI in enterprise software is expected to expand significantly. As technology continues to evolve, several trends are likely to shape the AI application layer:

• Increased automation across all business functions

• Greater reliance on AI copilots and virtual assistants

• Deeper integration of AI into existing SaaS platforms

• Expansion of AI capabilities beyond current use cases

• Growing importance of data quality and governance

These trends will create new opportunities for companies that can innovate and adapt. Importantly, the shift toward AI‑driven workflows is not a temporary trend—it represents a fundamental change in how businesses operate.

A New Era of AI Software Investment

The AI revolution is entering a new phase—one defined not by infrastructure, but by application. While the companies that build chips and power data centers will remain essential, the real value creation is increasingly happening at the software level. This is where AI meets everyday business operations, delivering tangible results and driving long‑term growth.

For investors, this shift presents a compelling opportunity to identify the next generation of market leaders. Companies like ZoomInfo, HubSpot, and Figma—highlighted by JPMorgan for their outsized upside potential—illustrate how AI software stocks at the application layer can convert technological breakthroughs into recurring revenue and durable competitive moats.

The challenge lies in recognizing these opportunities before they become widely acknowledged. In many ways, the current environment resembles the early days of cloud computing—when a handful of forward‑thinking companies transformed entire industries by redefining how software is delivered and used.

Today, AI is driving a similar transformation, and the application layer is where that shift becomes most visible in financial results. For investors willing to look beyond the obvious infrastructure winners, the next wave of upside may well be found in the AI software stocks quietly embedding intelligence into the tools enterprises already rely on every day.

FAQ: AI Software Stocks Set to Surge in Next Market Phase