ARK Invest predicts $13T AI software demand by 2030

Brett Winton, Chief Futurist at ARK Invest, suggested that the AI-driven reduction in software development costs will lead to a surge in software demand and significantly transform the structure of value chains.

“At 4.5x productivity improvement against $30T in 2030 knowledge work wages with 10% value capture into the tech stack suggests $13T in 2030 AI software demand… Seems like that should be very good for software vendors,” Winton stated.

“On current industry structure we would expect $6.5T in revenues, which suggests nearly $40T in enterprise value on current multiples,” Winton added.

While there were no specific SaaS or software related exchange-traded funds that were listed by ARK Invest, market participants who share an aligned view with the ETF issuer may look towards the below names for further insight to the space:

Popular Software Focused Stocks: Broadcom (AVGO), Cisco Systems (CSCO), Palo Alto Networks (PANW), Fortinet (FTNT), and Oracle (ORCL).

Popular Software Focused ETFs: iShares Expanded Tech-Software Sector ETF (IGV), Amplify Cybersecurity ETF (HACK), Invesco AI and Next Gen Software ETF (IGPT), SPDR S&P Software & Services ETF (XSW), and Themes Cybersecurity ETF (SPAM).